Increased whale activity and large withdrawals from exchanges signal rising demand for Dogecoin (DOGE), the largest memecoin by market capitalization.

Although AI tokens and stock market parody coins have been popular recently, major players are once again focusing on Dogecoin, with some market analysts targeting a $1 price point for 2025.

Data from multiple sources reveals a surge in whale transactions, particularly those above $100,000 over the weekend. Such movements often act as precursors to a potential price increase. Historically, January has been Dogecoin’s top-performing month, averaging an 85% return, with exceptional years like 2014 and 2021 showing 250% and 700% returns, respectively. The median January return sits at 5%, just behind October’s 8%.

Futures markets for DOGE also hit a new record on Monday, with open interest reaching 10.35 billion DOGE, up from 7.50 billion DOGE over the weekend. This surge surpasses the March 2024 peak of 10 billion DOGE, according to data from CoinGlass. Open interest, which refers to the total number of unsettled derivative contracts, can signal new investment entering the market, indicating both the confirmation of current trends and the likelihood of upcoming volatility.

The spike in open interest points to a strong continuation of the bullish trend. CoinDesk’s market analyst, Omkar Godbole, forecasts that DOGE could reach 50 cents in the short term based on technical chart patterns.

“DOGE has moved above the important 50-day simple moving average (SMA), and the 10-day SMA is also turning upward, signaling a bullish outlook,” Godbole noted. “Additionally, the price discount on Coinbase compared to Binance has disappeared, making a move through the $0.40 resistance more likely, and setting the stage for a potential rally toward 50 cents or higher.”

The simple moving average (SMA) is a key indicator used to track average prices over time and can help identify resistance and support levels.

“However, trading volumes on Coinbase are still below those observed during the November rally, so caution is advised as long as the $0.40 resistance remains intact,” Godbole added.

Some analysts are even more bullish, forecasting that Dogecoin could hit the $1 mark by 2025, nearly 50% higher than its all-time high of 70 cents in 2021.

“Dogecoin will finally hit $1, placing its market cap at $100 billion,” said Alex Thorn, head of research at Galaxy Digital, in his 2025 market predictions. “However, the Department of Government Efficiency, which will institute spending cuts that surpass Dogecoin’s 2025 market cap, will eventually outpace DOGE’s valuation.”

Dogecoin’s recent price surge has been largely driven by ongoing support from tech entrepreneur Elon Musk, particularly through his endorsement during the Trump administration.

Musk’s plan to create a “Department of Government Efficiency” (D.O.G.E), aimed at reducing government spending, has further fueled excitement. This initiative has sparked growing expectations that Dogecoin will continue to gain visibility in the mainstream media and among retail investors, as CoinDesk first pointed out in mid-October.