In December 2024, major investors in Dogecoin (DOGE) — the whales — continued to accumulate the token on a large scale, purchasing over 570 million DOGE, worth $188 million, indicating that market sentiment remains bullish.
Despite the overall market's cautious performance, Dogecoin's historical returns and whale bets have made investors confident in its future.
Whales are making large purchases, and market sentiment is strongly bullish
Large investors holding 100 million to 1 billion DOGE purchased another 300 million DOGE in a single day, worth $94 million.
Recently, another group of whales also bought 270 million DOGE. Such large-scale acquisitions indicate that whales are confident in Dogecoin's future upside potential, which may lay the foundation for Dogecoin's long-term appreciation.
January's historical return performance varies, but still shows bullish potential
According to historical data, Dogecoin's average return in January is 83.9%, but it does not show strong growth every year.
Over the past 10 years, Dogecoin's performance in January has been mixed, with only 5 months achieving positive returns, and an average loss of 3.86%.
However, January 2025 may be a turning point, especially with Dogecoin closing above the key support level of $0.315 in December 2024, which is the highest level since the 2021 bull market.
2025: Opportunities and challenges for Dogecoin
Although Dogecoin's historical performance in January has been mixed, January 2025 could become an important breakout point, with a gain of over 700% in December setting a positive tone for future targets.
Currently, the price of Dogecoin is around $0.3186, with a recent slight increase of 0.44%, further strengthening bullish sentiment. However, despite the optimism, the risk of a pullback cannot be ignored.
Elon's influence and the future of Dogecoin
Elon Musk continues to support Dogecoin, and his words and actions remain a significant driving force for the cryptocurrency.
For example, Musk proposed the idea of a 'Dogecoin Department of Efficiency' and claimed that this department could save the U.S. $2 trillion in expenditures.
This proposal, although controversial, has once again attracted significant attention to Dogecoin. Meanwhile, Musk's company Tesla accepts Dogecoin as a payment method and holds a large amount of Bitcoin, further driving the development of the DOGE ecosystem.