Dogecoin (DOGE), the popular meme coin, could be in for a holiday boost if historical patterns match investor expectations. The phenomenon known as the "Santa Claus rally," a seasonal rise in financial markets and asset prices during the last five trading days of December and the first two days of January, is attracting attention in the cryptocurrency market as the riskiest and most potentially lucrative.
While typically associated with stocks, this pattern could also affect DOGE, especially given its unique December price history.
Historically, such rallies have occurred 76% of the time, significantly outperforming the average market movement. Although rooted in traditional financial markets, cryptocurrency traders often look to such patterns for potential parallels.
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Dogecoin's December performance over the past decade presents a mixed picture, but offers hope for bullish sentiment this year.
DOGE's December
For example, CryptoRank data shows instances of dramatic gains, such as a staggering 337.5% gain in December 2017, as well as more moderate rallies, such as 32.4% in 2020 and 7.87% in 2018. Notably, last year brought modest growth for Dogecoin, with a 7.01% increase. However, negative years are also common, with December 2022 marking a sharp 34.7% decline.
DOGE Price History by CryptoRank
All eyes are on whether Dogecoin can continue its upward trajectory as December unfolds. While a Santa Claus rally is not guaranteed, the combination of historical trends and modest early month gains positions DOGE as a cryptocurrency to watch this holiday season.
The performance of the major meme coin in November is also something to keep in mind, as DOGE posted a 161.5% gain. Its all-time high is still 75% higher, with its price figure currently staying at $0.42. But if this is really something impossible for Dogecoin, it does not seem so.
