DOGE is experiencing market correction but shows signs of recovery. As the largest memecoin by marketcap, Dogecoin has been one of the hardest hit by the broader market correction. With a fully diluted valuation of around $38.4 billion, the token is down over 25% in the last 2 weeks, trading at around $0.24 as of Feb 7, 2025.
Despite this pullback, market analysts believe DOGE is poised for a big bounce and technicals are pointing to a possible bounce to $0.48, the December 2024 highs.
Technical Analysis: DOGE in Bullish Pennant
From a technical standpoint, DOGE has been in a bull pennant for months, a chart pattern characterized by an ABC correction.
– The drop to $0.20 was a retest of the lower boundary of a descending trend, which historically signals a reversal.
– The daily RSI has been in oversold territory for over a week, a common sign of price bounce.
– The 200-day MA is currently acting as a strong support, reinforcing the case for a recovery.
Indicator | Current Value | Implication |
RSI | ~30 (Oversold) | Indicates potential bounce |
200-Day MA | Acting as support | Reinforces upward momentum |
Falling Trendline | Recently retested | Possible trend reversal |
If market sentiment turns bullish, DOGE could break above resistance and head to $0.48 or higher.
On-Chain Data Shows Strong Whale Accumulation
Beyond technicals, on-chain data from Santiment suggests Dogecoin whales are accumulating big time, a sign of a price rally to come.
Wallets holding 10-100 million DOGE have reportedly added over 750 million DOGE during the latest correction.
These whales now allegedly hold over 23.2 billion DOGE, a sign of increased institutional and high net worth interest.Large accumulation means people have confidence in the asset’s future, so a bullish breakout in the coming weeks is more likely.
External Factors: Institutional Interest and Memecoin Hype
External factors driving Dogecoin’s price recovery include growing institutional acceptance and memecoin hype.
1. The Trump Memecoin Effect
The newly announced Official Trump (TRUMP) memecoin on the Solana blockchain has been behind the recent memecoin buzz among speculating traders looking to make some quick profits.
DOGE has always been considered the face of meme coins, so this hype around a new sector can work in its favor, giving the coin more market exposure.
2. Adoption at the level of Payment and Miner Activity
- More companies now accept Dogecoin for payments or as a tip.
- The network has a strong Mining Community with high security and much decentralization compared to new meme coins.
It fuels sustained demand and is, therefore, viable in the long run, making DOGE a good investment despite market fluctuations.
DOGE Price Prediction: Levels to Watch
Support Levels | Resistance Levels | Price Target |
$0.20 | $0.32 | $0.48 (Local High) |
$0.24 (Current Price) | $0.38 | $0.55+ (New High) |
Bullish Scenario
If the buying momentum continues and Dogecoin breaks above the $0.32 resistance, then $0.48 could be targeted.
- Whale accumulation and technicals are bullish.
- 200-day MA could be support for more upside.
Bearish Scenario
If Dogecoin can’t hold the $0.26 – $0.20 green zone, then it could go lower.
- More losses if market uncertainty persists.
- No bullish catalysts means extended consolidation.
Conclusion: Will DOGE Rebound to $0.48?
Dogecoin’s recent dip aligns with the broader crypto market correction, but technical and on-chain data suggests a bounce.
- Aggressive whale accumulation means institutional players are confident.
- Bullish chart patterns mean price could break out.
- Memecoin hype and payment adoption are extras.
If DOGE can hold the current support zones, it’s very good for a bounce to $0.48. But investors must be careful and check market trends and resistance zones before trading.
Stay updated with Deythere as we’re available around the clock, providing you with updated information about the state of the crypto world.
FAQ
1. Why is the Dogecoin price dropping?
Dogecoin is part of the larger crypto market correction, down 25% in 2 weeks due to profit-taking and low trading activity.
2. What do indicators say about Dogecoin price recovery?
RSI, whale accumulation and 200-day MA support say DOGE is at the cusp of a bullish bounce.
3. Can Dogecoin go back to $0.48?
DOGE can go to $0.48 or more if it breaks above $0.32 resistance, depending on market sentiment and other external factors.
4. How does Trump memecoin affect Dogecoin?
The Official Trump (TRUMP) meme coin has revived interest in meme coins which will increase awareness and demand for the meme cryptocurrency DOG.
5. Is Dogecoin a good investment now?
Dogecoin is still a speculative asset. But whale accumulation, technicals and memecoin hype point to a bounce.
Glossary
RSI, Relative Strength Index: A momentum indicator that technically shows if an asset is overbought or oversold. When RSI is below 30, it generally means a possible reversal to the upside.
Moving Average (MA)Moving Average: A trend-following indicator that smoothes price over a set period. 200-day MA is used to determine long-term support/resistance.
Whale Accumulation: Big investors (“whales”) buying a lot of an asset, which affects market trends.
Bullish Pennant: A chart pattern that means uptrend continuation often breaks out.
Resistance and Support: Support is the price level at which buying interest is strong enough to prevent a further decline.
Resistance is a level where selling pressure may be intense enough to stall upward movement.
References
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