In the seven days to Monday, January 13, Dogecoin’s price fell significantly, falling 17% in a week, from $0.4 to below $0.32.
This doesn’t necessarily mean that something is wrong with Dogecoin this week. Most major cryptocurrencies fell sharply on Monday after a sharp rise while the new Congress convened in Washington.
As of Monday afternoon Chicago time, bitcoin was trading down about 10% this week. Meanwhile, ethereum was down 18% from its average cryptocurrency exchange market price seven days ago.
BNB is also trading down around 8.5%, while Solana’s stock price has fallen 20% from its intraday high of $2.21 on January 6 as the new congressional representatives took office.
However, the entire cryptocurrency market rebounded on Monday morning.
Another veiled call from Elon Musk on Monday may not have impacted the price of Dogecoin.
After naming his advisory office the new Presidential Department of Government Efficiency (DOGE), Musk can call on the government to reduce costs and fight for Dogecoin in one position. That’s efficient.
1. DOGE sentiment data signals a downturn?
According to analysis by blockchain insights firm Santiment, sentiment readings on Monday were favorable for Dogecoin, the world’s first popular meme coin with its own blockchain — forked from Bitcoin on Dec. 6, 2013.
“Dogecoin’s market capitalization has fallen 28% since its peak a month ago,” Santiment wrote in a note to users of the blockchain market analysis engine last Thursday.
Santiment added: “Sentiment has been close to its lowest point over the past year. (This) means that if the crypto market is trending upward again, then boldly investing in DOGE (especially) could actually have some nice upside.”
Earlier this month, Peter Mathers of TradingLounge spotted an Elliott Wave pattern that could take Dogecoin above $0.48 and possibly as high as $0.61, Mathers wrote on Jan. 6.
2. Bullish exchange signals
Data from derivatives markets also suggest that Dogecoin is about to rise again. At the beginning of this month, more than 81% of all open contracts for Dogecoin futures on Binance were long Dogecoin.
3. Crypto whale-sized bites
Crypto whale activity in DOGE pools in January is another sign that Dogecoin is about to make another splash in the crypto market. According to a recent update from keen whale watcher Ali Martinez, blockchain whales bought 470 million Dogecoins in 48 hours between January 9 and 10.
This isn’t the first time whales have made a big bet on Dogecoin in January. Earlier this month, they bought 1 billion Dogecoin in less than 24 hours.
This is another drop following the massive purchase of Dogecoin in late December, so the support for Dogecoin from large traders is very strong.
