As major participants join the rebound, Dogecoin momentum is strong

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Dogecoin (DOGE) has shown significant momentum in the cryptocurrency market in recent weeks, with prices close to $0.386578, and its market dynamics and technical indicators suggest a larger rise may be on the horizon. Here are some key factors driving Dogecoin's strong performance:

1. Participation of large investors

The continuous influx of large participants has been a key driver of Dogecoin's recent rise. In particular, the significant increase in trading volume over $100,000 indicates that more funds are entering the market, pushing prices higher. This influx of funds not only reflects market confidence in Dogecoin but also suggests that the upward trend may continue.

2. Historical performance: Bright performance in January

January is one of the brightest months for Dogecoin's performance. Historical data shows that the average return in January is 85%, with some years even reaching 250% or 700%. While not every January performs strongly, and some years have returns of only 5%, the strong trends of the past few years provide a technical and market foundation for the current rise.

3. Activity in the futures market

According to data from CoinGlass, the open interest in the Dogecoin futures market has reached a record 10.35 billion DOGE, indicating a continuous influx of market funds. An increase in open interest typically signals that the upward trend in the market may continue and that volatility may increase. This phenomenon is often a precursor to price increases, especially driven by large investors and institutions.

4. Technical analysis: Breakthrough of key support levels

According to cryptocurrency analyst Omkar Godbole, Dogecoin has the potential to reach 50 cents in the short term. He points out that DOGE has broken above the 50-day simple moving average, which is often considered an important signal for price recovery. Additionally, he mentioned that the closing price gap between Binance and Coinbase is also a positive signal for the market, although he warned that the current trading volume is still relatively low compared to previous rebounds.

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