On January 3 alone, whales purchased 1.08 billion DOGE, worth approximately $413 million at the time, according to an X post by analyst Ali Martinez.

The next day, another whale transferred 5 billion DOGE (worth approximately $2 billion) to an unknown address, becoming the fourth largest owner of Dogecoin.

Data from analysis platform Santiment shows a significant increase in the number of transactions for Dogecoin over $1 million last week. Such whale accumulations are often viewed as a major bullish signal for the asset. Because whales are generally better at spotting market trends and making investments with long-term gain potential.

Additionally, Dogecoin’s number of daily active addresses increased last week. This is considered a positive market perception and network health indicator, indicating that investors have become active.

Dogecoin also attracted attention when Canadian investment firm Spirit Blockchain Capital announced its plans to use DOGE assets to generate returns. On the other hand, speculations about Elon Musk’s plans to launch a payment system on the X platform also increased the interest on DOGE.

Musk has long shown that he is one of the biggest advocates of the meme coin by previously accepting DOGE in Tesla payments and supporting Dogecoin on social media. Investors think that DOGE can be included as a payment option in the “X Money” payment system along with other cryptocurrencies such as Bitcoin.

DOGE’s open interest increased by over 50%, driven by increased demand among derivatives traders. According to CoinGlass, DOGE’s open interest value reached $2.97 billion as of December 6, while it was $2 billion on December 1.

Technical indicators are also positive for DOGE. On the daily chart, DOGE price is trading above the 50-day and 200-day Exponential Moving Averages (EMA), indicating that buyers are in control.

Additionally, the MACD (Moving Average Convergence Divergence) and price oscillator are trending upwards. This indicates that DOGE may continue its rise in the coming weeks and test the $0.41 resistance. If this level is broken, DOGE could reach its highest level in 2024 at $0.47.

January is historically the most profitable month for Dogecoin, according to Coinglass data. Some experts, such as Galaxy Digital research director Alex Thorn, predict that DOGE could hit the $1 target by the end of 2025.

However, Dogecoin’s weighted social sentiment (-0.60) could be a short-term hurdle. This negative perception may also present an opportunity for contrarian investors who want to benefit from the cautious approach of the market.

At the time of writing, Dogecoin is trading at $0.3825, up 20% in the last 7 days, outperforming other meme coins such as Shiba Inu, Pepe and Bonk, with a market value of $56.5 billion.