Dogecoin Activity Surges, Fueling Speculation of Major Price Upswing

Dogecoin, the digital token originally designed as a lighthearted take on cryptocurrencies, has witnessed heightened trading activity over the past 48 hours, prompting growing speculation that the meme-inspired coin could see a substantial jump in the coming weeks. 

Analysts say large holders, sometimes known as “whales,” have collectively acquired roughly 90 million tokens in a short period, coinciding with a modest rebound for Dogecoin’s price.

Source: X

According to on-chain data, the recent spike in accumulation follows three days of price declines, which sent the coin to an intraday low near $0.308 on Dec. 27. The price then recovered slightly, hovering close to $0.316 by midday on Saturday before showing signs of an ongoing tug-of-war between buyers and sellers. Market participants believe that if the price breaks below $0.30, it may trigger a deeper pullback toward the $0.27 or even $0.23 range, where some traders expect strong buying interest. Conversely, a decisive move beyond $0.38 could indicate that the current downtrend has run its course, leaving room for Dogecoin to test higher levels near $0.43.

Source: Brave New Coin

Despite lingering uncertainty, long-term holders appear hopeful that January could bring renewed momentum. Historical data from analytics platforms indicates that Dogecoin’s January performance has sometimes yielded impressive returns.

One study suggests the coin averaged a 91.5% gain in January, based on more than 10 years of data. That figure partly reflects a standout month in January 2021, when Dogecoin’s price skyrocketed by more than 700%. Still, analysts caution that the median January performance is negative, underscoring that previous results do not guarantee future success.

Macro Backdrop Weighs on Sentiment

Dogecoin’s fate may also hinge on broader market forces. A Bitcoin-driven rally across digital assets earlier in the year appears to have stalled in recent sessions, with most major cryptocurrencies experiencing muted trading volumes. Investors remain cautious amid rising concerns over monetary policy and signs that the U.S. Federal Reserve may adopt a more hawkish stance in 2025. While the central bank is widely expected to leave interest rates unchanged at its late-January meeting, traders have not ruled out the possibility of tighter policy later on if inflation proves stubborn.

The recent U.S. jobless claims data came in lower than anticipated at 219,000, below the Dow Jones forecast of 225,000, raising some optimism over the labor market. However, continuing claims jumped to their highest level since late 2021, suggesting a degree of slack that could still influence consumer behavior and, by extension, risk-sensitive assets like cryptocurrencies.

Altseason Hopes and Market Outlook

Some observers point to Ethereum’s historical performance in early months—often accompanied by rallies in other alternative cryptocurrencies, or “altcoins”—as a potential signal that Dogecoin could benefit from a broader surge. Data shows Ethereum has produced positive median returns from January through May in several recent years. If that pattern repeats and triggers a renewed altseason, Dogecoin might see amplified gains thanks to its historically high volatility and strong community support.

Still, the road ahead is far from certain. Critics argue that meme-inspired assets like Dogecoin may lack robust fundamentals and remain heavily influenced by social media sentiment. Proponents counter that steady development efforts and growing interest from prominent influencers could strengthen the coin’s use cases over time.