Dogecoin (DOGE) is back in focus, as people expect this December to induce a ‘Santa rally of crypto coins’. Reportedly, this rally has been expected to take place towards the end of December, and the latest uplift has been of particular interest to Dogecoin fans as, at the time of writing, the digital currency is trading at $ 0.4525 in the market after experiencing a 6.48% improvement in the last one day according to data from CoinMarketCap. Historically, there has been a 76 percent chance for such rallies to occur, though the performance of Dogecoin in the past December months has been done halfway.
Analyzing Dogecoin’s Historical December Performance
It’s interesting and unpredictable what happened to Dogecoin in the period of December of this year. It surged by a high of 337.5% in December of 2017 as well as a comparatively smaller surge of 32.4% in the year 2020. Nonetheless, the month of December, especially this year, has not been very friendly to Dogecoin since it began a free fall to 34.7% of its value this year.
Such hopes have been sparked by early December advances this year. The report from the same source noted that the price of Dogecoin rose to a 161.5 percent increase in November as attention was brought on its continued upward trajectory. But, the January and July phenomenon’s past record states that traders should be cautious even though the two months are busy.
The Santa Rally: A Holiday Tradition?
The Santa rally is borrowed from traditional share markets and indicates a tendency for the stock market to gain during the last week of December and the early days of January. Though such a pattern has previously been evident in stocks, Cryptocurrencies such as Dogecoin have also been shown to exhibit shallow rates of convergence.
This can be seen when a community member recently tweeted on their X [Twitter] stating that they will donate $5,000 worth of Dogecoin if DOGE reaches $1 by December 3rd. While this milestone may remain in the air, usually such announcements lead to gained attention from trading.
However, Dogecoin is still 75% down from its record high of $0.73 set in May last year. However, this has not stopped its current ramp up into making it one of the most popular cryptocurrencies to follow during this festive season.
What Lies Ahead for Dogecoin?
Nevertheless, Dogecoin also had its ups and downs in the prices during the month of December its current price level shows a trend that might make it possible for it to have a moderate rise in the market. A slight increase at the beginning of December and the overall result in November may mean the continuation of the dynamics but with fluctuations.
When asked about its current standing, market strategist from CryptoMetrics, James Linton shared his thoughts on the matter, “Given these signs, the current market this December is indeed ripe, but really, Dogecoin never fails to twist the knife a little in its performance.”
Currently, DOGE can be considered to have an even higher trading volume and an active presence in social networks. However traders need to understand the concept of ‘Resistant & Support Level’. According to technical indicators on TradingView, the breakout is likely to happen at $0.50, given that the market has a bullish outlook.
Conclusion
Is a Santa rally in the store for Dogecoin (DOGE) this December? The historical performance and current run up hint at a festive pop while the Check pattern shows mixed performance in December. There is need for traders to have keen observation to the existing market trends and the important levels of the prices.
When December comes, DOGE result will tell whether the meme coin will a bring Christmas spirit and joy or leave investors hung for the next big move. Keep following The Bit Journal for latest crypto updates and developments.
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