Dogecoin (DOGE), the largest and most popular memecoin, has experienced a significant drop to $0.30 levels following a major rally.
Despite this drop, there is still an expectation for DOGE to rise, as data indicates an increasing interest from whales in Dogecoin.
Currently, investors are displaying a great deal of interest in DOGE, and the DOGE futures markets have broken a new record in terms of open interest. According to data from Coinglass, the number of active contracts has risen from 7.50 billion DOGE to 10.35 billion DOGE over the weekend, surpassing the peak of 10 billion DOGE in March 2024.
Experts who have commented on the changes in the DOGE futures market have stated that the increase in open interest suggests the entry of new money into DOGE, which could potentially lead to a rise and increased volatility. They also believe that a high open interest rate indicates the continuation of a strong trend.
Market analyst Omkar Godbole has stated that Dogecoin will rise in the coming weeks and he expects the price to reach $0.5. He supports his forecast by citing historical data and the 50-day Simple Moving Average (SMA), stating that DOGE has historically performed well in January with an average return of 85%.
“DOGE has surpassed the closely monitored 50-day SMA, which is coinciding with a rise in the 10-day SMA, indicating a potential uptrend. Additionally, the price difference between Coinbase and Binance has disappeared, suggesting that prices are likely to break the current three-day resistance at $0.4 and potentially move to $0.5 and beyond.”
In addition to Godbole’s short-term target of $0.5, Alex Thorn, the head of research at Galaxy Digital, predicts that Dogecoin could reach $1.
*This article does not provide investment advice.