Why Dogecoin price is still running toward $2

Dogecoin (DOGE) price has dropped over 3.5% in the last 24 hours to $0.3663, despite a recovery across the broader cryptocurrency market, which rose by around 3% in the same period to rest at $3.62 trillion. 

Although DOGE currently trades 33% below the multi-year high of $0.4846 reached on Dec. 8, 2024, several factors support more upside for the world’s largest memecoin.

Increasing whale activity boosts DOGE price

One of the primary drivers behind today’s surge in Dogecoin’s price is the significant increase in activity from whales—investors who hold large amounts of the cryptocurrency. 

Whale transactions involving Dogecoin have surged significantly within the last 24 hours. Data from Santiment shows an increase in whale activity by holders with balances between 10 million and one billion DOGE. 

The trend in the chart indicates that DOGE whale activity ticked up on Jan. 21. These whales added approximately 590 million DOGE tokens (worth about $214 million at current rates) over the last 24 hours, correlating with a rise in the memecoin’s price over the same timeframe.

This uptick in buying activity suggests that large investors accumulated DOGE when the price dipped to $0.33 on Jan. 21, suggesting that this cohort expects higher prices in the future.

Launch of the official US DOGE website

Also boosting investor sentiment was the appearance of the Dogecoin logo on the website of the newly established US Department of Government Efficiency, known as D.O.G.E., which US President Donald Trump established in an executive order following his inauguration on Jan. 20. 

DOGE’s price jumped 13% within minutes of the website going live on Jan. 21.

Although the website no longer displays the Dogecoin logo, the event brought unprecedented visibility to Dogecoin, associating it with a governmental initiative led by Elon Musk, who is known for his affinity toward the memecoin.

Meanwhile, there is growing speculation around the potential filing and approval of a Dogecoin exchange-traded fund (ETF). The crypto market has witnessed a wave of ETF filings following the resignation of the former Securities and Exchange Commission Chair Gary Gensler, leading to heightened anticipation that a DOGE ETF could be approved soon following the approval of Bitcoin and Ethereum ETFs.

Bloomberg Senior ETF analyst Eric Balchunas said the DOGE ETF “could hit the market in early April” once approved.

Related: Price analysis 1/20: SPX, DXY, BTC, TRUMP, ETH, XRP, BNB, SOL, DOGE, ADA, LINK

An ETF approval would provide a regulated investment vehicle for traditional investors, potentially increasing Dogecoin’s exposure and legitimacy in the broader financial world, thereby increasing demand and pushing the price higher.

DOGE price patterns measure $0.95 to $2

Chandler, an independent crypto trader and investor, highlighted that DOGE’s recent price action is part of an accumulation trend that has been in play since 2021.

The Mayer Multiple Bands shows that the price is right where it was in January 2021, “accumulating between the yellow and orange lines,” the analyst said, adding: 

“A breakout above the red line today would send $DOGE to $0.95.”

With palpable momentum brewing in the markets, WSB Trader, an anonymous crypto commenter, said that the memecoin’s drop to $0.33 on Jan. 21 provided a good dip for investors before DOGE price can go up to $1.

Meanwhile, Trader Tardigrade Mikybull, a technical analyst, provided a more ambitious outlook involving a possible breakout from a bull flag with a $2 target following the breakout.

“Dogecoin has formed a bull flag on the 2-day chart. This $DOGE bull flag pattern target measures over $2 .”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.