The price of Dogecoin, the most popular memecoin on the market, is 50% below its current all-time high (ATH), but the market is showing strong optimism. With 81% of bullish positions and a positive funding rate this week, it seems that traders believe in a significant recovery for this digital asset.
DOGE is currently trading around $0,37 per unit, which is 50% below its all-time high (ATH) of $0,73, recorded almost four years ago. However, it seems that the market is betting on a significant recovery for this digital asset, with 81% of futures positions being bullish and a positive funding rate this week.
According to Coinglass data, the Dogecoin futures market has shown a clear predominance of bullish positions. The platform shows that this week 81% of open positions in this market are “long”, indicating a widespread expectation that the price of DOGE will continue to rise.
For context, a “long” position refers to the purchase of futures of an asset with the belief that its value will increase. In contrast, “short” positions, which reflect a bearish expectation, represent only 19% of current DOGE trades in this market.
Source: coinglass
This bullish trend in DOGE price is reinforced by the positive funding rate in the memecoin futures contracts. When this metric is positive, it indicates that bullish positions dominate in the perpetual futures market. This scenario suggests that traders are confident in a significant recovery for the Dogecoin price in the near term.
Bulls dominate. What key factors are driving this optimism?
Several factors are contributing to the market’s optimism towards Dogecoin. One of the most notable catalysts is Donald Trump’s presidential inauguration in the United States on January 20. Trump, known for his interest in easing regulation for the development of the cryptocurrency industry, is generating positive expectations in the sector. In addition, his administration will have a Department of Government Efficiency whose acronym in English is “DOGE”, a direct nod to the cryptocurrency market.
Source: coinglass
This DOGE division will be led by billionaire entrepreneur Elon Musk, a strong Dogecoin enthusiast. Musk, known for his influence in the cryptocurrency market, has been a vocal supporter of DOGE, which has contributed to its popularity and value in the past. The combination of Trump’s pro-crypto policy and Musk’s influence is motivating bullish hopes in the market.
Recovery and volatility: a cautious scenario
Dogecoin has accumulated an appreciation of more than 360% in the last year, despite the decline in its price in the last month. This growth, combined with the predominance of bullish positions, suggests that DOGE has significant potential to continue recovering. Some estimate that this 2025 the meme cryptocurrency could reach a valuation of $1 per unit and establish a new ATH.
However, some traders also remain cautious, considering the volatility that characterizes cryptocurrencies. As is typical in this market, prices can change quickly due to various factors.
Source: CoinMarketCap
Currently, the macroeconomic backdrop is playing a major role in crypto investors and traders’ optimism towards Dogecoin. The US Producer Price Index (PPI) data has contributed to a rebound in the price of Bitcoin and other cryptocurrencies, including Dogecoin. Additionally, Wednesday’s Consumer Price Index (CPI) report could inject another burst of volatility into the markets and provide more clues for traders on the path of the Federal Reserve’s policy for the year.
Trump’s inauguration next week is another key catalyst that could move markets, although experts such as K33 believe that the start of his second term as US President may no longer be an event that significantly impacts the market, due to the sell-off in stocks and digital assets seen at the beginning of the year. However, with the predominance of bullish positions, a positive funding rate, and several macroeconomic and political factors driving optimism this week, the scenario for Dogecoin looks promising in the short term.
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