Key Notes
- Dogecoin price has a high correlation with Bitcoin and Ethereum, which are showing short-term bearish sentiment.
- The macro outlook for DOGE price remains bullish backed by a robust community of investors and users.
Following the recent death cross between the 50 and 100-day Moving Averages (MA), Dogecoin DOGE $0.24 24h volatility: 5.1% Market cap: $36.21 B Vol. 24h: $1.52 B , the largest and oldest meme coin-backed tech billionaire Elon Musk , has suffered bearish sentiments in the recent past. The large-cap altcoin, with a fully diluted valuation of about $37.3 billion and a 24-hour average trading volume of about $1.5 billion, has been forming a falling trend characterized by lower lows and lower highs in the daily time frame.
Having consistently closed below a previous crucial support level above 31 cents, the Dogecoin price faces further market correction in the near term. Moreover, Dogecoin price has been forming a possible bearish flag in the past few days catalyzed by the recent long squeeze after heavy liquidations of long traders.
In case of further bearish sentiment, the Dogecoin price will retest the support level of around 20 cents, which coincides with the 0.618 weekly Fibonacci Retracement. Furthermore, DOGE price recently retested the 50-weekly MA as a support level.
#Dogecoin $DOGE remains in a downtrend, forming lower lows and lower highs. A breakout above key resistance is needed to shift momentum! pic.twitter.com/kBomx6RXrG
— Ali (@ali_charts) February 16, 2025
Dogecoin Price in the Long Haul
In the long haul, Dogecoin price is well positioned to rally exponentially towards its parabolic phase of the 2024/2025 bull rally. Furthermore, DOGE price has been forming a rising trend characterized by higher highs and higher lows in the weekly time frame since October 2023.
Even though the Dogecoin price may drop as much as 42% toward 14 cents, the meme coin is well positioned to retest its all-time high in the near term.
Declining Whale Activity
According to on-chain data analysis provided by Santiment, the Dogecoin network has experienced a sharp decline, of nearly 88%, in whale activity since mid-November 2024. The low demand for meme coins following heightened rug pulls on the Solana (SOL) network has weighed down on DOGE’s short-term bullish sentiment.
Fundamental Aspects
As the leading meme coin backed by the mainstream adoption of institutional investors and retail traders, Dogecoin has shown robust market resilience. Over the years, DOGE has gradually shifted to a utility-based meme coin with more institutional investors betting on its inevitable parabolic rally ahead.
Furthermore, the dog-themed meme coin is the second largest digital asset secured through the legendary proof-of-work (PoW) consensus after Bitcoin. As of this writing, the Dogecoin network had a total hashrate of about 2.07 PH/s and a mining difficulty of around 30.84 M.
Over the years, the Dogecoin on-chain community has grown to over 6.18 million holders backed by institutional investors.
The US SEC has recently acknowledged Grayscale’s 19b-4 application for spot DOGE ETF. As a result, the agency is likely to acknowledge the spot Dogecoin ETF filings by Bitwise, Rex Shares, and Ospreys Funds in the near future.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
