Dogecoin, the popular meme coin, is likely to be boosted during the holidays if historical patterns align with investor expectations. The phenomenon known as the 'Santa Rally', a seasonal uptick in financial markets and asset prices during the last five trading days of December and the first two days of January, is drawing attention in the cryptocurrency market for its highest risks and potential profits.
Although often associated with stocks, this pattern can also affect DOGE, especially when considering the unique price history of this coin in December.
Historically, such price increases have occurred 76% of the time, significantly outperforming the average market volatility. Although stemming from traditional financial markets, cryptocurrency traders often look to such patterns to identify potential similarities.
The performance of Dogecoin in December over the past decade shows a mixed picture, but still offers hope for a bullish trend this year.
December of DOGE
For example, CryptoRank data shows instances of spikes, such as the astonishing 337.5% increase in December 2017, as well as more modest increases like 32.4% in 2020 and 7.87% in 2018. Notably, last year brought modest growth for Dogecoin, with a 7.01% increase. However, down years are also common, with December 2022 marking a sharp decline of 34.7%.
All eyes are on whether Dogecoin can maintain its upward momentum as December unfolds. While there is no guarantee of a price increase during Christmas, the combination of historical trends and modest early-month gains has positioned DOGE as a notable cryptocurrency this holiday season.
The performance of the major meme coin in November is also noteworthy, as DOGE surged by 161.5%. Its all-time high is still over 75% higher, with the current price still at $0.42. But if this is truly impossible for Dogecoin, it doesn't seem to be the case.