That’s not necessarily an indication of anything going wrong with Dogecoin this week. Most major crypto tokens were trading down significantly Monday after an exuberant rally around the time of the new Congress convening in Washington.
By Monday afternoon in Chicago, Bitcoin had fallen some 10% for the week’s trading. Meanwhile, Ethereum had fallen by 18% from its average crypto exchange market price seven days earlier.
BNB was also trading down some 8.5%, and Solana had fallen by 20% under its intraday high price of $2.21 on Jan. 6 as delegates to the new Congress took their seats for the current session.
However, the entire crypto market bounced off on Monday morning.
Just wanted to express appreciation for President @realDonaldTrump and so many people, both inside & outside of government, supporting @DOGE.
I am confident that the American people will be happy with the outcome.
— Elon Musk (@elonmusk) January 13, 2025
What probably didn’t hurt Dogecoin’s price on Monday was another implicit shout-out from Elon Musk.
After naming his advisory office to the new president, the DOGE for Department of Government Efficiency, Musk can rally for cheaper government and Dogecoin in one post. Now that’s efficient.
1. DOGE Sentiment Data Marks Dip Over?
According to an analysis by blockchain insights firm Santiment, Dogecoin’s sentiment reading Monday favors the world’s first popular meme coin, which has its own blockchain—a fork from Bitcoin on Dec. 6, 2013.
“Since its top exactly one month ago, Dogecoin has shed -28% of its market cap,” wrote Santiment last week in a Thursday note to the blockchain market analytics engine’s users.
“Crowd sentiment has been near its lowest point over the past year,” Santiment added. “(This) means there is actually some nice upside to be a daring contrarian toward DOGE (in particular) if crypto markets begin to trend upward again.”
Earlier in the month, TradingLounge’s Peter Mathers spotted an Elliot Wave formation that could see Dogecoin rally to above $0.48— and potentially as far as $0.61, Mathers wrote on Jan. 6.
2. Bullish Exchange Signals
Data from derivatives markets is also hinting at another rally for Dogecoin soon. To start the month, over 81% of all open interest in Dogecoin futures on Binance was long for DOGE.
3. Crypto Whale Sized Bites
Whales bought over 470 million #Dogecoin $DOGE in the last 48 hours! pic.twitter.com/d7oPvnfB6o
— Ali (@ali_charts) January 10, 2025
Crypto whale activity in the DOGE pool in January is another sign that Dogecoin is about to make another big splash in crypto markets. In a 48-hour period on Jan 9 and 10, blockchain whales bought 470 million Dogecoin in 48 hours, according to a recent update from sharp whale watcher Ali Martinez.
It’s not the first time whales made big moves in Dogecoin this January. Earlier in the month, they bought a billion DOGE tokens in under 24 hours.
That follows up on whales buying the Dogecoin dip in late December as well, so support from large sum traders is strong with this one.
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