Last week, many major cryptocurrencies saw significant price declines. Dogecoin, known for its popularity among market participants, also experienced periods of volatility. However, factors such as Elon Musk’s attention and analyst data suggest potential for a possible rise.
Dogecoin Sentiment Decline
Analysts from Santiment noted that recent sentiment towards Dogecoin has been among the lowest over the past year. However, this situation could create potential for recovery for this cryptocurrency under favorable market conditions. Recently, TradingLounge analyst Peter Mathers predicted that Dogecoin could rise above $0.48 based on an Elliott wave formation.
Bullish Exchange Signals
Data from derivatives markets show that 81% of open positions on Dogecoin futures on Binance are associated with long-term growth prospects for this cryptocurrency.
Crypto Whale Activity
In January, significant crypto whale activity has been observed in regards to Dogecoin. Over a 48-hour period on January 9 and 10, major investors acquired 470 million Dogecoin tokens. This activity continues the trend initiated back in December when these market participants acquired substantial volumes of Dogecoin in a short time.
Despite the recent decline in the cryptocurrency market, Dogecoin shows signs of potential growth thanks to positive sentiments, exchange data, and large investor activity.
