- DOGE bulls aim for a strong weekly conclusion after previously consolidating for about two weeks.
- Does this validate Dogecoin’s position in terms of investor interest in 2025, considering its strong performance in 2024?
If you’re wondering about the potential of Dogecoin (DOGE) by the year 2025, then its strong start might help alleviate your concerns.
This could be due to the fact that the meme coin started the current week with a bullish trend, possibly suggesting a continued bullish momentum following a predominantly bullish fourth quarter in 2024.
dogecoin experienced a significant increase in momentum towards the end of the week, fueling optimism that its price may reach $0.5 in the near future.
Previously, it had managed to surge up to $0.48 in December following a series of strong, upward trends.
In simpler terms, after a brief decline of 45% in December, Dogecoin experienced a period of about two weeks where its price remained relatively stable.
Investors were holding off on making their moves, as they were uncertain about where the price would trend during the initial week of January.
At the moment of reporting, Doge was traded at approximately $0.39, driven by a 27% surge over the past week. This upward trend could potentially lead to another attempt to surpass the $0.50 mark in the coming weeks, provided that the bullish momentum continues.
During the week, a significant reversal in the Relative Strength Index (RSI) for Dogecoin signaled strong buying interest, which likely triggered the subsequent increase in its price, indicating a bullish trend.
Further inspection beneath the surface uncovered that it stemmed from a blend of immediate trading and futures transactions.
Dogecoin derivatives demand takes the lead
As a researcher, I recently observed an impressive surge in Dogecoin derivatives volumes. Over the past 24 hours, these volumes skyrocketed by up to 175%, reaching a significant figure of over $9 billion. At the time of my observation, Open Interest was also notably high, exceeding $3 billion.
source: Coinglass
The surge in Open Interest brought back memories of the bullish enthusiasm seen in November. Noteworthy patterns in immediate demand were spotted.
From the 12th of December 2024, until the 1st of January 2025, DOGE consistently had unfavorable cash flows.
On the third of January, there was a significant increase in demand, amounting to approximately 21.2 million dollars, as the spot flow turned favorable.
source: Coinglass
Shifting focus towards optimistic trends in the derivatives market coincides with a surge in bullish sentiment. Yet, this doesn’t automatically guarantee that the positive momentum for Dogecoin will persist unchanged.
Despite this, it’s clear that the desire for DOGE in 2025 might be equally robust as it was in November of the previous year.
Read Dogecoin’s [DOGE] Price Prediction 2025–2026
To sum up, the renewed interest in buying (bullish demand) might dictate Dogecoin’s trend during the 2025 market surge.
If it proves true, the meme coin could maintain its appeal and continue to move in sync with Bitcoin (BTC).
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2025-01-05 10:15