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Steve Muchoki
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Key Notes
- Dogecoin price has closely followed Bitcoin in the recent past ahead of the much-anticipated altseason.
- The unwavering support of DOGE by tech billionaire Elon Musk has helped the dog-themed memecoin remain relevant.
Dogecoin DOGE $0.17 24h volatility: 0.6% Market cap: $24.73 B Vol. 24h: $834.49 M , the oldest and leading meme coin by market capitalization, has been trapped in a correction mode since hitting a local high of about 48 cents in early December 2024. The large-cap meme coin, with a fully diluted valuation of about $39 billion and a 24-hour average trading volume of around $1.59 billion, is in the final phase of an ABC correction following the notable crypto selloff earlier this month.
Dogecoin Price Flashes Bullish Sentiment
From a technical analysis standpoint, DOGE price has been following in the same footsteps as Bitcoin BTC $84 441 24h volatility: 0.8% Market cap: $1.68 T Vol. 24h: $26.00 B since the re-election and inauguration of US President Donald Trump. Furthermore, Dogecoin price action is heavily influenced by Elon Musk, a tech billionaire who is actively involved in the Trump administration through the D.O.G.E program.
With Bitcoin price showing early signs of a bullish breakout towards a new all-time high, it is safe to assume that DOGE price will follow next. In the daily time frame, the DOGE price has been retesting the lower border of a bullish pennant during the past five days.
Already, the daily Relative Strength Index (RSI) for DOGE/USD has been hovering in the oversold levels. With the 200-day Moving Average (MA) acting as a robust support level, Dogecoin price is well positioned to rally toward the upper border of the pennant formation in the coming days.
The short-term bullish sentiment for Dogecoin price will, however, be invalidated if the top-tier meme coin consistently closes below the support level around $0.2277. Moreover, the weekly RSI will slip below the 50% level and trigger heightened liquidations.
#Dogecoin's current Pullback copys the 2017 price structure 🔥
There's a strong potential that $DOGE has hit a local bottom and could soon reach new ATHs 🚀 pic.twitter.com/qebm6TBTXw— Trader Tardigrade (@TATrader_Alan) February 6, 2025
DOGE Whales’ Renewed Interest
The demand for meme coins has grown exponentially in the past year, fueled by the rising adoption of cryptocurrencies by institutional investors. The strategic launch of Official Trump (TRUMP) by US President Trump, which has grown to a $3.7 billion valuation and 24-hour average trading volume of about $2.4 billion, has changed the memecoin dynamics.
With the upcoming crypto regulatory clarity in the United States, whale investors have been accumulating more prospective altcoins, while short-term traders capitulate.
According to on-chain data from Santiment, Dogecoin whales, with an account balance of between 10 million and 100 million coins of DOGE, have accumulated over 750 million coins amid the ongoing market correction. Consequently, Dogecoin whales, in the described category, hold more than 23 billion coins, which has instilled confidence in the dog-themed memecoin.
Meanwhile, Dogecoin Futures Open Interest (OI) has gradually increased in the past year to hover about $2.42 billion.
Disclaimer: 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.
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