Dogecoin Leaps 20% In 7 Days: What Is Going On?

Dogecoin DOGE/USD has climbed 20% over the past week, yet trader sentiment remains surprisingly pessimistic.

Cryptocurrency	Price	Market Cap	24-Hour Trend	7-Day Trend
Dogecoin DOGE/USD	$0.3865	$57 billion	+0.9%	+20.6%
Shiba Inu SHIB/USD	$0.00002406	$14.2 billion	+1.4%	+11.4%
Pepe PEPE/USD	$0.00002069	$8.7 billion	+0.04%	+11.7%

Trader Notes: Crypto chart analyst Ali Martinez pointed out that Dogecoin's weighted social sentiment is at -0.60, reflecting widespread doubt about its upside potential.

Martinez suggests this bearish sentiment might actually make it "a good time to be a contrarian."

#Dogecoin $DOGE weighted social sentiment is at -0.60, which means the crowd remains very pessimistic about its upside potential. This might be a good time to be a contrarian! pic.twitter.com/inpdSwGnSg

— Ali (@ali_charts) January 6, 2025

Trader Tardigrade noted that DOGE has dropped 45% from its recent peak, replicating a pattern from previous market cycles.

This, they argue, sets the stage for a strong rally with the potential to hit new all-time highs.

Statistics: Coinglass data shows a surge of 33.8% in open interest to $4.01 billion, while liquidations over the past 24 hours totaled $8.5 million, split evenly between long and short positions.

Community News: Speculation about an X Payments launch has added fuel to Dogecoin’s momentum.

MacRumors contributor Aaron noted in a Jan. 3 post that X could debut its payment system in the U.S., even without approvals from all 50 states.

Adding intrigue, a leak cited by Forbes hinted at Musk's "game-changing plan" for Bitcoin and crypto, sparking excitement over whether Dogecoin could play a pivotal role in X Payments.

Musk has previously teased Dogecoin’s potential in the platform, suggesting it might help reduce transaction costs and speed.

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