- DOGE could rally by 91% in January, based on historical data showing strong average returns for the month.
- However, the potential for an Ethereum-led altseason and renewed interest from Elon Musk may boost DOGE beyond its historical performance.
Dogecoin (DOGE), the cryptocurrency founded as a joke but now one of the most recognized names in the crypto space, could be on the verge of experiencing a 91% rally this January. This comes to place as data from Cryptorank has revealed that January has often been a strong month for DOGE, boasting an average return of 91.5% over its 10-year history. This data paints a hopeful picture for investors and enthusiasts as the new year approaches.
While Dogecoin’s track record in January is impressive, its most profitable month occurred in 2021. That year, fueled by a perfect storm of social media frenzy, celebrity endorsements, and growing crypto adoption, DOGE soared by an astounding 711.5%. However, subsequent years have not been as rewarding, with DOGE experiencing losses in two Januarys and a modest 37.2% gain in 2023.
CryptoRank’s broader analysis shows mixed signals for January’s performance. Of the eleven Januarys since its inception in 2013, only five have concluded with positive returns. Additionally, the median return stands at -7.95%, suggesting a higher probability of a decline. This historical divide creates uncertainty, presenting two potential scenarios for DOGE as January 2025 approaches.
In favor of a bullish outcome, Ethereum’s price history and the broader altcoin market dynamics might play a pivotal role. Ethereum, the second-largest cryptocurrency by market capitalization, has historically exhibited strong performance from January to May, with positive average and median returns in each of these months. Notably, its lowest median return during this period stands at a solid 12.1%.
If Ethereum leads the way into an altcoin season, a period when alternative cryptocurrencies outperform Bitcoin, it could set the stage for Dogecoin to follow. This phenomenon often sees smaller-cap altcoins riding the coattails of major players like Ethereum as investor sentiment shifts towards riskier assets.
Elon Musk’s Influence and Market Sentiment
Adding to the intrigue, Dogecoin’s fate remains intertwined with that of its most prominent advocate, Elon Musk. It is worth noting that Musk’s sporadic tweets and comments about DOGE have historically resulted in significant price movements. Recently, Musk hinted at new use cases for Dogecoin, potentially fueling further interest and adoption.
Should Ethereum kickstart an altseason, and if Musk introduces another wave of enthusiasm, Dogecoin’s potential gains in January might not be confined to historical averages. Instead, it could reignite the excitement last seen during its meteoric rise in 2021.
January presents a crossroads for Dogecoin. While historical data highlights a compelling case for a 91% rally, its mixed track record and negative median return cannot be ignored.
Meanwhile, DOGE is swapping hands with $0.3211 after 1.56% decline in the past 24 hours.
