Dogecoin (DOGE) has seen a surge in popularity, with its price reaching over $0.40 for the first time since 2021. In the past four weeks, the number of Dogecoin wallets holding less than 100,000 DOGE increased by 74,885. Meanwhile, large holders, with over 100,000 DOGE, saw a decline of 350 addresses over the same period. However, recent data shows that 108 of these large wallets have returned, fueling the latest rally.
There is also record-high open interest in Dogecoin futures. On Monday, the CoinGlass data shows that the open interest in Dogecoin futures was $2.75 billion. It rises from $2.21 billion recorded in the previous high in March. However, despite this increased focus, many traders are hedging against a continuation of the price rise. Among those options, 50.75% were short options on Monday, meaning that some traders hope that the price of Dogecoin will stop rising.
The increase in Dogecoin’s price and trading volume follows the latest U.S. presidential election. After Donald Trump’s re-election, Dogecoin has surged, growing by almost 100 percent. The reason behind the rise of the coin could be associated with Elon Musk, who supports the biggest supporters. Musk played a significant role in Trump’s campaign and is expected to have a place in the new administration. Trump even proposed creating a new agency, the Department of Governmental Efficiency (D.O.G.E.), with Musk as its head.
Dogecoin Hits Three-Year High as Musk and Trump Drive Rally
Dogecoin’s recent rally has drawn significant interest from both retail and institutional traders. While small retail wallets are increasing, the decline in large holders may impact future price trends. Santiment, a blockchain data analytics platform, noted that ideally, both retail and large stakeholders should accumulate Dogecoin together. This combination is seen as essential to sustaining price momentum. Observers believe the coming days will show if “sharks” and “whales” continue to support Dogecoin’s upward trend.
The recent activity has also sparked increased trading on major exchanges. Analysts are watching the market closely to see if Dogecoin can maintain its current trajectory. The sustained price rally will likely depend on the balance of buying and selling pressure, especially among large holders and retail investors.
