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Joel Frank
Author
Joel Frank
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Meme coin markets are on the front foot in early 2025, with the Dogecoin (DOGE) price having now pushed up higher by around 3% for two days in a row, though the world’s largest meme coin is currently struggling with resistance around $0.34.
The Dogecoin (DOGE) price, last around $0.3360, was unable to break above its 21DMA earlier in the day.
But in wake of a break above its December downtrend a few days ago, the Dogecoin bulls will be optimistic that the recent modest rally could accelerate in the days ahead.
Resistance in the form of some recent lows and the 50DMA between $0.365-0.38 could cause problems for the bulls.
But a near-term rally remains much more likely than a Dogecoin price decline.
Why the Dogecoin Price Is Likelier to Rally Than Fade
DOGE’s 14-day RSI fell to nearly oversold levels when the Dogecoin price bottomed around $0.26 in late December.
Looking at the Dogecoin price’s relationship to its RSI over the past few months, RSI lows have tended to form around the same time as Dogecoin price lows, and have thus worked as good buy signals.
By that interpretation, the subdued RSI reading in late December could have been a good buy signal.
Analysis of the fundamental market backdrop fits with the view that now could be a great time to buy Dogecoin (DOGE).
The avidly pro-crypto Trump administration is set to land in the White House in under three weeks, kickstarting a new golden age for the US crypto industry and markets more broadly.
Bitcoin (BTC) is expected to pump this year, which is especially true if the US establishes a strategic Bitcoin reserve.
Altcoins could do even better, given the current anti-crypto, altcoin-hating SEC chair Gary Gensler is set to depart on January 20 for a much more pro-crypto replacement and Trump ally Paul Atkins.
That means altcoin season could be right around the corner, which could also mean meme coin season.
And Dogecoin is set to remain a leading force in the meme coin market. It remains the largest by market cap, with a value of close to $50 billion, around 50% of the outstanding meme coin market capitalization per CoinMarketCap.
This leadership could grow in 2025, as the new Elon Musk-led Department of Government Efficiency (D.O.G.E) begins its controversial work and starts dominating the headlines.
This all but guarantees Dogecoin is set to retain a leading share of the meme coin market’s so-called “mind share”, guaranteeing strong performance.
That’s a lot of reasons to be bullish on the Dogecoin price right now. So, how high could it go?
How High Could Dogecoin Go In 2025?
Assuming meme season comes surging back, DOGE is odds on to retest its 2021 highs, and to do soon very quickly.
Beyond that, the $1 level that Dogecoin investors have long craved for is also very possible in the coming months.
But would that mark the end of the Dogecoin bull market? History suggests that’s unlikely, and that Dogecoin could go a lot higher than many people might be able to comprehend.
Let’s take the past two Dogecoin bull cycles. In both the 2017 and 2021 cycles, Dogecoin far exceeded the 4.236 Fibonacci extension levels from beyond its prior record levels.
Might returns have diminished now that Dogecoin has become a near-$50 billion-dollar asset? Yes, probably.
But if Dogecoin can only match its 4.236 Fibonacci extension level beyond its 2021 high, that would imply a Dogecoin price of around $3, and a market cap of nearly $450 billion.
That might sound excessively high. But if Bitcoin is going to $500,000 this cycle amid the establishment of strategic Bitcoin reserves around the world, that would imply an approximately $10 trillion market cap.
Dogecoin has exceeded 5% of Bitcoin’s market cap in the past, and could continue to do so into the future.
