Dogecoin (DOGE-USD) has been sitting in the shadows, but recent signs suggest it could be gearing up for a comeback. While the meme coin has taken a significant hit this year, down 28% in market cap since January, the sentiment shift could offer a prime opportunity for contrarian investors.
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According to Santiment, a data analytics firm, the current crowd sentiment surrounding Dogecoin is at its lowest point in a year. This, they say, presents a potential upside if the crypto market trends upward. The firm pointed out that despite a quieter period for Dogecoin, “there’s some nice upside to be a daring contrarian toward DOGE” should the tides turn.
Whale Activity Signals Potential Price Bumps
One of the key indicators fueling optimism for Dogecoin is a surge in activity from “whales” – large investors making transactions over $100,000. This uptick in whale transactions has sparked speculation of a short-term price bump. Even though Dogecoin’s performance has been lackluster lately, it historically performs well in January, with an average 85% return in the past years. Santiment noted that the technical indicators, like the 50-day moving average, also point to a potential bullish trend with a short-term target of 50 cents.
Cardano Leads Broader Market Recovery
While Dogecoin shows promise, Cardano’s ADA (ADA-USD) took the lead in a market-wide recovery. The altcoin rose by 5.5% within 24 hours. This market resurgence comes as traders shift their attention to AI Agent tokens, which are leading growth across crypto sectors. Solana (SOL-USD), Binance Coin (BNB-USD), and Ethereum (ETH-USD) also saw modest gains, yet Cardano’s strength stands out as the focal point of today’s rally.
At the time of writing, Dogecoin is sitting at $0.3234.
