Dogecoin, the digital token originally designed as a lighthearted take on cryptocurrencies, has seen increased trading activity over the past 48 hours, leading to growing speculation that the meme-inspired coin could see a significant surge in the coming weeks.
Analysts say large holders, sometimes known as “whales,” have acquired a total of around 90 million tokens in a short period of time, coinciding with a slight recovery in the price of Dogecoin.
Source: X
According to on-chain data, the latest accumulation surge follows three-day price declines that sent the coin to an intraday low near $0.308 on December 27. The price subsequently recovered slightly and hovered near $0.316 at midday on Saturday before showing signs of an ongoing tug-of-war between buyers and sellers. Market participants believe that a price drop below $0.30 could trigger a deeper decline towards the $0.27 or even $0.23 area, where some traders expect strong buying interest. Conversely, a decisive move above $0.38 could indicate that the current downtrend has come to an end, leaving Dogecoin room to test higher levels near $0.43.
Source: Nice new coin
Despite the ongoing uncertainty, long-term investors appear to be hopeful that January could bring new momentum. Historical data from analytics platforms suggests that Dogecoin’s January performance has produced impressive returns at times.
A study suggests that the coin saw an average increase of 91.5% in January, based on more than 10 years of data. This figure partly reflects a stellar month in January 2021, when the price of Dogecoin skyrocketed by more than 700%. Still, analysts warn that mid-January…
