Dogecoin Price Dips 5%, But Indicators Point Toward New All-Time Highs
Dogecoin’s (DOGE) price has dropped by 5% in the past 24 hours to $0.3663, despite the broader cryptocurrency market recovering by 3% to a total market cap of $3.62 trillion. While DOGE remains 33% below its multi-year high of $0.4846 from December 2024, several technical and on-chain metrics suggest a bullish outlook for the popular memecoin.
Whale Activity Signals Optimism
A surge in whale activity is one of the key factors supporting Dogecoin’s price momentum. Large-scale investors, holding between 10 million and 1 billion DOGE, added approximately 590 million tokens worth $214 million within the last 24 hours, according to data from Santiment. This accumulation suggests that whales are capitalizing on the recent price dip and anticipating a future price rally.
Governmental Endorsement Fuels Interest
Investor sentiment also received a boost from the inclusion of the Dogecoin logo on the official website of the newly established U.S. Department of Government Efficiency (D.O.G.E.). Created through an executive order by President Donald Trump, the department’s association with the memecoin caused a 13% spike in DOGE’s price within minutes of the website going live. Although the logo was later removed, the event significantly increased Dogecoin’s visibility and public interest.
Potential DOGE ETF Sparks Excitement
Speculation surrounding the approval of a Dogecoin exchange-traded fund (ETF) is adding to the bullish sentiment. The crypto market has seen a surge in ETF filings following changes in the regulatory landscape, with Bloomberg analyst Eric Balchunas predicting a DOGE ETF could hit the market by April. Approval would grant traditional investors regulated access to Dogecoin, potentially boosting its demand and legitimacy.
Price Targets and Patterns
Technical analysts are observing key price patterns that point to significant upward potential for Dogecoin:
- Accumulation Phase: Chandler, an independent trader, noted that DOGE is following an accumulation trend seen since 2021. Breaking above resistance levels could push the price to $0.95.
- Bull Flag Formation: Trader Tardigrade Mikybull highlighted a bull flag pattern on the 2-day chart, suggesting a potential breakout could send DOGE to $2.
Market Momentum Builds
The memecoin’s recent dip to $0.33 on January 21 is seen as a buying opportunity by market watchers, with predictions of a rally toward $1 and beyond. If the bullish momentum continues, Dogecoin could challenge its previous highs and achieve new milestones.
Conclusion
With increasing whale activity, rising public visibility, and the possibility of a DOGE ETF, Dogecoin appears to be positioning itself for a strong upward move. While volatility remains a factor, market conditions and technical indicators suggest the potential for new all-time highs in the near future.
