DOGE is about to Increase by 91%: Could Ethereum be the Catalyst?

Dogecoin (DOGE), a cryptocurrency originally created as a joke but now one of the most recognized names in the crypto space, is expected to undergo a 91% price increase in January. This comes as data from Cryptorank reveals that January is typically a strong month for DOGE, boasting an average profit 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 performance in January was impressive, its highest profitable month occurred in 2021. That year, driven by a perfect storm of social media hype, celebrity endorsement, and increasing adoption of cryptocurrency, DOGE skyrocketed with an astonishing 711.5% increase. However, the following years were not as favorable, with DOGE suffering losses in two Januarys and a modest 37.2% increase in 2023. A broader analysis by CryptoRank shows conflicting signals about the performance of January. Out of 11 January since its establishment in 2013, only five months ended with positive returns. In addition, the average return is -7.95%, indicating a higher likelihood of decline. This historical divergence creates uncertainty, offering two potential scenarios for DOGE as January 2025 approaches. To support the price increase, the price history of Ethereum and the broader market dynamics of altcoins may play a crucial role. Ethereum, the second-largest cryptocurrency by market capitalization, has shown 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 is 12.1%. If Ethereum leads an altcoin season, a period where alternative cryptocurrencies perform better than Bitcoin, it could pave the way for Dogecoin to follow. This phenomenon often sees smaller market cap altcoins trailing behind larger entities like Ethereum as investor sentiment shifts to riskier assets. The influence of Elon Musk and market psychology Adding to the appeal, the fate of Dogecoin is still closely tied to its most prominent supporter, Elon Musk. Notably, Musk’s sporadic tweets and comments about DOGE in history have led to significant price fluctuations. Recently, Musk has hinted at new use cases for Dogecoin, which could further drive interest and adoption. If Ethereum launches an altcoin season and if Musk creates another enthusiastic wave, then the potential increase of Dogecoin in January may not be limited to the average historical level. Instead, it may rekindle the excitement last seen during the surge in 2021. January is a crossroads for Dogecoin. While historical data highlights a compelling case for a 91% price increase, its mixed performance and average negative profit cannot be overlooked. Meanwhile, DOGE is trading at $0.3211 after decreasing by 1.56% in the past 24 hours. DYOR! #Write2Win #Write&Earn $DOGE {spot}(DOGEUSDT)