In the world of cryptocurrencies, history seems to be constantly repeating itself, and Dogecoin may be looking for the right moment to embrace new opportunities.
The recent wave of cryptocurrency market crashes has caused the gains of meme coins since early 2025 to evaporate instantly, and Dogecoin [DOGE] was no exception. A large amount of 70 million DOGE tokens rapidly flowed into Binance, causing the price to plummet sharply, and the market chart lit up with red signals.
However, in the panic mood of the market, there lies a hidden opportunity. The 'high risk, high reward' characteristics of meme coins still attract those investors eager to gain quick profits in the short term.
At this time, Dogecoin's trend began to show some signs of recovery.
Looking back at the week before Christmas 2024, the Federal Reserve announced no interest rate cuts, which triggered a significant market downturn, with Bitcoin [BTC] dropping 15% in just two weeks. Many altcoins also suffered, and the price of Dogecoin [DOGE] fell accordingly.
In early December, Dogecoin briefly reached an annual high of $0.48, but just two weeks later, the price dropped to $0.30, and the DOGE/BTC trading pair also showed dismal performance, with funds clearly flowing into other higher market cap altcoins.
But just when market sentiment was low, Dogecoin surged against the trend. In the first week of 2025, its closing price nearly approached $0.40, suggesting that some investors began to sense its potential and rushed in to buy, attempting to earn quick short-term returns from this meme coin.
After the Federal Reserve acted again, Bitcoin dropped by 8%, and the market seems to be heading towards a downward range of $90,000. In this market environment, Dogecoin [DOGE] may once again welcome a capital influx, just like in previous rebounds.
Although history often favors Dogecoin, this situation is ultimately not a constant. From a psychological perspective, Dogecoin seems to have a 'first-mover advantage' under the current circumstances. After the market has taken a heavy hit, investors choosing to continue holding Bitcoin must bear higher risks, and at this stage, it is evident that there is not enough return to offset this risk.
Considering that Dogecoin's price has dropped by 10%, combined with historical trends and market sentiment, it may currently be a critical moment for accumulation.
Next, we can verify whether this speculation holds true by analyzing on-chain data.
Price potential of Dogecoin
Recently, approximately $70 million worth of DOGE tokens flooded into Binance, causing the price of Dogecoin to drop over 10% in the past three days, erasing earlier gains instantly. However, in the first week of 2025, Dogecoin's price rose against the trend by 18%, reaching $0.40. Behind this rebound, the holdings of whale accounts surged by 400%. This is clearly a positive signal, and the trading volume indicators also suggest a possibility of an upward trend, with the MACD showing bullish momentum, indicating a potential new wave of accumulation in the coming days.
In the futures market, open interest (OI) slightly decreased to $3.43 billion, a drop of 1.29%, but bulls remain confident about a rebound. Currently, most traders are choosing to short DOGE, which could actually become a potential bullish signal. If whales enter the market again, the short squeeze effect is likely to be triggered, forcing traders to buy back, and the price of Dogecoin is expected to refresh its highs.
From historical trends, psychological factors to trading volume indicators, all suggest that Dogecoin may be entering an accumulation phase. A price surge for Dogecoin in the coming days is not impossible. However, to achieve this, the market's 'risk' must remain high, prompting investors to choose to flow safe-haven funds into meme coins like Dogecoin.
