Dogecoin (DOGE) will continue to keep people busy in 2025. The meme coin, which started out as a joke, now has a market capitalization of more than $50 billion and is currently trading around $0.34. With this strong position in the crypto market, investors are speculating about a possible explosive price increase in the near future.
Historical patterns provide hope
One of the main reasons for the optimism surrounding Dogecoin can be found in its history. Analyst Cephii points on a notable increase of 1,107% that occurred after Joe Biden’s inauguration in January 2021. According to Cephii, a similar increase could occur after Donald Trump’s inauguration on January 20, 2025. Based on this historical trend, he predicts that Dogecoin will increase in value of $4.15 could reach.
Trump’s election victory already appears to be having a positive impact on the broader crypto market. Immediately after the announcement of his victory, several cryptocurrencies, including Dogecoin, rose significantly in value. This suggests there is confidence in the impact of the new policy on digital assets.
Whale activity and market trends
A major factor behind Dogecoin’s recent price increase is the activity of major investors. In early January, whales bought a whopping 470 million DOGE tokens in just 48 hours. This builds on previous purchases in December and shows that there is strong support from major players in the market.
Moreover, data from derivatives markets indicate a largely optimistic mood. More than 81% of open futures positions for Dogecoin on Binance are long, meaning traders expect the price to rise further. These signals reinforce the idea that a significant rally could be imminent.
Strong correlation with bitcoin
Dogecoin has historically had a strong correlation with bitcoin, and that remains the case today. Last month this correlation was as high as 97%. This means that the performance of bitcoin can have a direct impact on the price of Dogecoin. Should bitcoin rise further in the coming weeks, it seems likely that Dogecoin will also benefit from this.
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Source: https://newsbit.nl/dogecoin-op-het-punt-van-explosieve-groei-experts-zien-kans-op-1-000-stijging/
