Elon Musk attracts $790 million in capital inflow, Dogecoin price expected to break $0.45
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On January 4, Dogecoin (DOGE) price broke $0.39, can it challenge $0.45?
Dogecoin (DOGE) had a strong performance at the beginning of 2025, with the price rising to $0.39 as of January 4, a 25% increase from the price after Elon Musk updated his profile on December 31. As the speed of capital inflow exceeds the price increase, whether Dogecoin can break the resistance level of $0.45 has attracted widespread attention in the market.
Market Reaction: Musk's update triggered intense reactions
On December 31, Elon Musk updated his X (formerly Twitter) profile, renaming it to "Kekius Maximus" and using a profile picture related to PEPE. This update immediately sparked widespread speculation, especially in the memecoin sector, driving a significant market surge including Dogecoin. Particularly, after Musk's profile update, the price of Dogecoin quickly rose 25.8% from $0.31, reaching $0.39 on January 4.
This reaction not only indicates that Dogecoin and other memecoins are highly sensitive to Musk's dynamics but also highlights the uniqueness of the memecoin sub-industry and investors' rapid response to market sentiment.
DOGE Market Performance and Capital Inflow
In the past five days, the Dogecoin market has experienced significant capital inflow, with $790 million of new capital entering the Dogecoin market, further intensifying bullish sentiment. Notably, the open interest data in the Dogecoin derivatives market (especially perpetual futures contracts) showed significant growth, increasing from $2 billion to $2.79 billion, a 39.5% increase.
This growth indicates several important market signals:
Increased leveraged trading: The growth rate of open interest outpaced the price increase in the spot market, indicating a significant increase in leveraged trading and more active speculative activity.
Bullish sentiment: The significant growth in open interest usually signals more buying interest and could lead to further price increases.
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