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Dogecoin’s impressive start in 2025 signals a potential continuation of its bullish performance from 2024, reigniting investor interest.
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Following a two-week consolidation period, DOGE is aiming for a strong weekly close, which may validate its place in the crypto market this year.
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As noted by COINOTAG, “The momentum resurgence in DOGE is backed by significant demand in both spot and derivatives markets.”
Dogecoin has shown strong bullish momentum at the start of 2025, raising hopes of reaching $0.50 soon after a period of consolidation.
Analyzing Dogecoin’s Bullish Momentum in Early 2025
Dogecoin’s (DOGE) recent bullish performance is no coincidence. After experiencing a 45% pullback in December, which was followed by a two-week consolidation, the memecoin has kicked off January with renewed vigor. Its price was reported at approximately $0.39, marking a 27% increase for the week, creating optimism about a potential rise to the coveted $0.50 level if the current demand persists.
Market Indicators Reveal Strong Demand
An analysis of key market indicators such as RSI (Relative Strength Index) points toward a robust demand for DOGE. A rapid pivot in its RSI suggests significant investor interest, underpinning the current bullish sentiment. Furthermore, trading activity, particularly in the derivatives market, reveals a surge that exceeds previous levels.
Exponential Growth: Dogecoin Derivatives Trade Volume
According to Coinglass, the volume of Dogecoin derivatives has skyrocketed by 175%, surpassing $9 billion in the past 24 hours alone. This surge in trading volume is pivotal, with Open Interest recorded at over $3 billion, signifying that traders are increasingly betting on DOGE’s upward trajectory.
source: Coinglass
Spot Demand Reversal Points to Positive Outlook
Initially, DOGE faced negative spot flows from mid-December until the start of January 2025. However, on January 3rd, positive flow was observed, with a notable increase amounting to $21.2 million. This switch from negative to positive flows not only aligns with bullish derivatives activity but may signal a broader interest resurgence in DOGE.
source: Coinglass
Conclusion
The resurgence of bullish demand for Dogecoin as it enters 2025 could set a significant precedent for its performance throughout the year. The combination of heightened trading activity in both derivatives and spot markets indicates that investor interest is robust. If these trends continue, DOGE not only stands to reclaim its previous highs but may also solidify its role in the larger crypto landscape alongside Bitcoin (BTC).
