If you have been keeping an eye on the future possibilities of Dogecoin [DOGE], then the strong start of the week might alleviate any concerns you had.
The meme-inspired cryptocurrency commenced the week on a positive note, signaling a potential continuation of the bullish trend from the last quarter of 2024.
DOGE concluded the week with a notable increase in momentum, leading to optimism about the possibility of reaching $0.5 in the near future.
In its previous attempt in December, Dogecoin surged to as high as $0.48 following a period of significant bullish momentum.
It is worth noting that the 45% drop in Dogecoin’s value in December was brief, followed by a consolidation period of two weeks.
During this time, investors were keenly observing to determine the direction in which the price would move in the initial week of January.
As of the latest update, DOGE was trading at $0.39, with a weekly increase of 27%. This indicates that there is a possibility of another push towards the $0.50 mark if the bullish trend continues.
The notable turnaround in Dogecoin’s RSI during the week confirms the strong demand, leading to a positive market response.
A closer look reveals that this shift was a result of increased activity in both spot and derivatives trading.
Surge in Dogecoin Derivatives Trading Dominates
According to Coinglass, trading volumes in Dogecoin derivatives soared by a remarkable 175%, exceeding $9 billion within the last 24 hours. This observation was valid at the time of reporting, with Open Interest surpassing $3 billion.
The increase in Open Interest echoes the optimistic sentiment that dominated the market in November. Noteworthy trends were also seen in spot trading.
From December 12, 2024, to January 1, 2025, Dogecoin consistently experienced negative flows in spot trading.
However, a significant shift was observed as spot flows turned positive, with a demand worth $21.2 million recorded on January 3rd.
The transition from negative to positive flows in spot trading resonated with the increased demand in the derivatives market. Yet, it remains uncertain if the bullish trend in DOGE can be sustained in the long term.
Nonetheless, the data suggests that the demand for Dogecoin in 2025 might match the strength witnessed in November of the previous year.
In summary, the recent resurgence in bullish demand could potentially set the tone for Dogecoin’s performance in the expected bull run of 2025.
If this scenario unfolds as anticipated, Dogecoin might not only maintain its appeal but also follow a similar path to Bitcoin’s momentum.