Dogecoin’s recent surge in whale activity has sparked speculation that the meme coin could be on the verge of a major rally. In the past day alone, DOGE trading volumes soared nearly 20%.
This increased demand and reduced circulating supply could pave the way for a price increase, especially as global political events unfold and influencers like Elon Musk continue to champion the coin.
At the time of this publication, DOGE traded for $0.3734, representing a 15% increase in the past week. This is despite a 3% decline in the past day. The meme token now ranks seventh on CoinMarketCap with a valuation of more than $54 billion.
Whale Activity Sparks Speculation
In a time of increased volatility in the cryptocurrency market, Dogecoin has been making significant moves. Despite Bitcoin's dramatic price swings, Dogecoin has been steadily hovering between $0.31 and $0.41 since January 1.
Currently priced at around $0.37, the meme coin is experiencing a surge in the trading activity, signaling that there is a boost in demand for the memecoin. Data from CoinMarketCap shows that the token was up 20% in the past 24 hours at more than $9 billion.
This may also encourage smaller investors to enter the market, further adding to the momentum. Beyond the increased activity, there are other factors that could fuel Dogecoin’s rise. The inauguration of Donald Trump as the 47th President of the United States has caught the attention of many within the crypto community.
During his campaign, Trump made pro-crypto promises, and his administration is expected to give the industry more focus. Elon Musk's involvement in Trump's administration is another element that could benefit Dogecoin.
Musk’s Role in the DOGE Department
Musk, a staunch Dogecoin supporter, has been vocal about the Department of Government Efficiency (DOGE), which is tasked with reducing bureaucratic inefficiencies within the US government.
This connection between Musk's new role and Dogecoin’s ticker symbol has created a sense of optimism among DOGE proponents. Many believe that Musk’s influence within the administration could positively impact Dogecoin’s value.
Elon Musk’s DOGE To Be Sued Within Minutes Of Trump Inauguration - WPhttps://t.co/nGgouRiMba
— LiveSquawk (@LiveSquawk) January 20, 2025
However, the newly formed DOGE department is not without controversy. National Security Counselors, a public interest law firm, is preparing a lawsuit against the agency for allegedly violating the Federal Advisory Committee Act, the Washington Post reported.
With such significant political and economic factors at play, Dogecoin is at an interesting crossroads. While its price remains volatile, the growing support from both influential figures and large investors could cause a price surge, at least in the near term.
This article was written by Jared Kirui at www.financemagnates.com.
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