Key Notes
- DOGE price tests support between 21-27 cents, with technical patterns suggesting potential for another 20% drop before next bullish wave.
- On-chain activity has significantly declined since mid-December, with daily transactions falling from 1.4 million to approximately 45,000.
- Long-term outlook remains positive with Elon Musk's support, potential X Payments integration, and institutional interest through spot ETF filings.
Dogecoin DOGE $0.26 24h volatility: 1.7% Market cap: $37.98 B Vol. 24h: $1.01 B price has been trapped in a correction phase since early December 2024, characterized by lower highs and lower lows. The top-tier dog-themed memecoin backed by tech billionaire Elon Musk, with a fully diluted valuation of about $37 billion and a 24-hour average trading volume of around $1.29 billion, has dropped 40 percent since pro-crypto US President Donald Trump was inaugurated earlier this year.
In the weekly time frame, the DOGE price has been retesting the support range between 21 cents and 27 cents, which coincides with the 0.618 and 0.5 Fibonacci Retracement. If DOGE price follows a similar trend as the correction phase between March 2024 and September 2024, the large-cap memecoin is likely to drop another 20 percent before kickstarting the next bull wave.
However, it is worth considering that Dogecoin has a positive price correlation with Bitcoin BTC $97 263 24h volatility: 1.7% Market cap: $1.93 T Vol. 24h: $20.08 B , of about 0.97 out of 1 according to IntoTheBlock . As a result, if Bitcoin price drops below $94k again in the near future, Dogecoin price will follow in tandem to retest the lower boundary of about 21 cents.
The short-term bearish sentiment will, however, be invalidated if the memecoin consistently closes above 30 cents, which will set the stage right for a parabolic rally beyond the psychological target of about $1.
#Dogecoin weekly Stochastic RSI signals Crossover in Oversold zone 🔥
Macro channel sets $Doge target above $1.5 🚀 pic.twitter.com/FfH6M97kim— Trader Tardigrade (@TATrader_Alan) February 19, 2025
Dogecoin Network Experiences Low Activity
As the overall demand for memecoins remains relatively low following rising reports of rug pulls on different chains, the Dogecoin network has experienced a significant drop in on-chain activity. According to market data analysis from bitinfocharts , the Dogecoin network has not recovered in daily transactions since mid-December, after dropping from over 1.4 million txs to about 45k transactions at the time of the writing.
Meanwhile, Glassnode data shows that DOGE’s Futures Open Interest 7-day Moving Average has declined by 54 percent, from $3.58 billion on December 9, 2024, to about $1.49 billion at the time of this writing.
Bigger Picture
Dogecoin has grown to a utility-based memecoin, backed by more than 6.1 million on-chain holders. Despite the emergence of new memecoins on other chains – led by Solana SOL $172.0 24h volatility: 2.3% Market cap: $84.05 B Vol. 24h: $3.88 B , and Ethereum ETH $2 745 24h volatility: 2.2% Market cap: $331.27 B Vol. 24h: $12.59 B – DOGE has remained undisputed in terms of market capitalization.
Over the years, DOGE holders have largely benefited from the unwavering support of Musk and his family of unicorns. For instance, as the X social platform prepares to launch X Payments in 2025, the integration of Dogecoin and other cryptocurrencies as a means of payment remains palpable.
As a result, Dogecoin fundamentals in 2025 and beyond remain robust, more so backed by institutional investors. As Coinspeaker reported , the US SEC has already acknowledged the filings for spot Dogecoin ETFs from Grayscale Investment , and Bitwise.
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.
