Dogecoin Jumps to January High as Inflation Cools and Crypto Rally Accelerates

Dogecoin continued its upward momentum, posting gains for a second straight day as renewed optimism swept across the cryptocurrency market. The meme coin climbed to $0.1485, reaching its strongest level since early January, as both macroeconomic developments and technical indicators aligned in its favor.

The broader crypto rally set the tone. Bitcoin’s move above $95,000, a level it had struggled to reclaim for months, helped lift sentiment across altcoins. Meme tokens followed suit, with Dogecoin benefiting alongside names such as Pepe and Shiba Inu, which also recorded notable advances.

Beyond market momentum, macroeconomic data played a key role. The latest U.S. inflation figures showed continued easing, with core CPI slipping to 2.6% in December from 2.7% a month earlier. Lower inflation expectations tend to support risk assets, particularly cryptocurrencies, as investors grow more confident about monetary conditions.

Regulatory developments are also feeding into the rally. Traders are closely watching the upcoming vote on the CLARITY Act, legislation designed to simplify and clarify crypto regulations in the United States. This shift toward clearer rules has already translated into increased institutional interest, with Dogecoin-linked ETF products attracting more than $4 million in inflows so far this year.

Seasonal factors may be adding further tailwinds. Early January has historically been a strong period for financial markets a phenomenon often referred to as the January Effect as new capital enters the market and portfolio rebalancing takes place.

From a chart perspective, Dogecoin’s price action is reinforcing the bullish narrative. The token recently broke out of a multi-month falling wedge, a structure that typically precedes trend reversals. The move came as momentum indicators began flashing early signals of strength, with both RSI and MACD turning higher ahead of the price rebound.

Short-term consolidation has taken the form of a bullish flag, suggesting the possibility of continuation rather than exhaustion. DOGE has also reclaimed its 50-day exponential moving average, flipped the Supertrend indicator bullish, and appears to be transitioning into the third phase of an Elliott Wave pattern, a stage often associated with accelerated gains.

Taken together, the combination of improving macro conditions, regulatory optimism, seasonal trends, and strengthening technicals suggests that Dogecoin’s recent rally may have room to extend further provided broader market momentum remains intact.