Dogecoin Price Prediction – Why DOGE Is Headed for a Rally to $0.50

Highlights:

• Dogecoin is holding strong at the $0.197 support level
• Dogecoin rebound off this price level could trigger a rally to $0.50 or higher
• A rally could be triggered by the broader market and increased whale activity

In the last 24 hours, all cryptocurrencies, led by Bitcoin, have been in the red, and Dogecoin is not an outlier. As of this publication, Dogecoin is trading at $0.202, which is a 3.34% decline in value. Even though this does align with the rest of the crypto market, Dogecoin is facing another set of price determinants, such as the D.O.G.E department.

Dogecoin Price Action and Events Around D.O.G.E Department

Recently, 21 employees resigned from the U.S. Department of Government Efficiency. This shocking move has raised fears around Dogecoin. That’s because of Dogecoin’s connection to Elon Musk and the fact that the department is named after the popular memecoin.

21 USDS (DOGE) employees said to have resigned in protest by CNN.

Who wants to bet these individuals have pronouns and blue hair?🤣 pic.twitter.com/vB198UYavJ

— 🇺🇸 ʟᴇғᴛ ᴄᴏᴀˢᴛ ᴠᴀɢʀᴀɴᴛ 🇺🇸 (@Baklava_USA) February 25, 2025

As these employees leave, the scrutiny around DOGE’s governance is bound to increase. The scrutiny could impact Dogecoin due to their connection. This would especially be the case if the broader market remains weak.

Market Reactions and Whale Acquisition of Dogecoin

Though Dogecoin is currently experiencing weak price action, whales are capitalizing on the dip. On-chain data from Santiment reveals that whales have bought 150 million DOGE within the last 72 hours. This type of accumulation suggests that large-scale investors are still bullish on Dogecoin, regardless of the short-term volatility.

Whales bought 150 million #Dogecoin $DOGE in the last 72 hours! pic.twitter.com/YRtujig2BO

— Ali (@ali_charts) March 6, 2025

Crypto analysts are also increasingly bullish on Dogecoin. One analyst has cited the price mark of $0.16 as an important point of support for Dogecoin. If Dogecoin manages to remain above this threshold, some traders expect a surge toward $0.74. On the other hand, if DOGE fails to hold the $0.16 support, the price may fall sharply, dropping to $0.015.

Crypto market analyst Ali Martinez holds similar views. He has pointed out that Dogecoin is trading in an ascending parallel channel. He highlights that if the $0.16 support holds, there’s bullish potential to break to new highs. On the flip side, if DOGE does not manage to hold the $0.16 support level, there’s a risk of a steep correction.

#Dogecoin $DOGE must NOT lose this support level! pic.twitter.com/i11z4m4Keu

— Ali (@ali_charts) March 6, 2025

Such bullish projections are based mainly on market sentiment. Dogecoin open interest has surged 2.4% to $1.8 billion in the last 24 hours. Furthermore, DOGE’s derivatives trading volume increased by 12.9% to $3.8 billion, indicative of heightened trading activity. It is an indicator that a rebound could be underway for Dogecoin.

Technical Analysis – Dogecoin Price Trading at Key Support Level

After a sustained correction, Dogecoin has established strong support at $0.197. This is an indicator that buyers are entering the market, and confidence is on the rise. If bulls take full control at this price level, then a rebound to $0.238 is now resistance.

A rally through this resistance could see Dogecoin rally to $0.33 in the short term. On the flip side, if Dogecoin bears regain control and push DOGE through the $0.197 support, then a correction to $0.10 could follow.

Recap

Expectations surrounding Dogecoin are mainly hinged on broader market activity and the political landscape in the United States. Increased whale activity alongside a significant shift in macros is likely tilting the scales in Dogecoin’s favor. However, scrutiny over D.O.G.E department governance could trigger a negative price action.

Overall, a confluence of positive factors at the current price could see Dogecoin retest its 2021 all-time highs in the short to medium term. In the short term, $0.50 is a critical level to watch in case of a rebound.