Dogecoin (DOGE) Forecast: Will the Meme Coin Revisit 2024 Highs of $0.23?

Dogecoin (DOGE) has managed to hold its ground at the $0.35 support level following a 9% drop triggered by the latest announcement from the US Federal Reserve.

Dogecoin (DOGE) price showed resilience at the $0.35 support level after a 9% drop triggered by the latest US Federal Reserve announcement.

Despite the Fed’s 25 basis point rate cut, which was largely anticipated, their pushback against rate cuts in 2025 sparked a broad sell-off in risk assets, including cryptocurrencies.

However, DOGE price recovered swiftly from Monday’s lows and returned above the $0.36 mark. This bounce was driven by a combination of factors, including technical support at the $0.33-$0.35 price range, which has acted as a strong floor for Dogecoin since mid-2021.

A breach below this level could open the door for a more significant decline, potentially revisiting early 2024 highs around $0.23.

On the other hand, DOGE price currently enjoys support from its 50-day moving average (50DMA) and robust investor sentiment, bolstered by November’s Trump rally, which drove a wave of optimism into markets.

Despite these short-term risks, Dogecoin’s long-term prospects remain promising, with 2025 shaping up to be a pivotal year for the popular meme coin. Several factors could amplify its performance throughout the year.

Crypto-Friendly Policies: The Trump administration’s pro-crypto stance and a new, more supportive US Congress may herald a golden era for digital assets. Proposals to establish US Bitcoin reserves and expand the strategic adoption of cryptocurrencies worldwide are generating immense excitement within the crypto community.

Elon Musk’s Endorsement: Dogecoin continues to benefit from its association with Elon Musk, whose influence keeps the coin in the spotlight. The establishment of the Department of Government Efficiency (D.O.G.E.), named after Dogecoin, underscores its enduring relevance. Musk’s long-standing support positions DOGE as a leader in the meme coin category.

If these elements align, Dogecoin could leverage its first-mover advantage and potentially surge toward the $1 mark.

Moreover, a glance at Dogecoin price action during previous Bitcoin (BTC) bull runs in April 2017, December 2020, and November 2024 offers an interesting observation.

While Dogecoin initially lagged behind BTC’s price discovery phase, the meme coin went on to achieve new highs within 1-3 months.

If this historical pattern holds true again, a Dogecoin breakout by early 2025 is highly plausible. Its consistent track record of catching up to Bitcoin’s momentum highlights the potential for substantial price gains.