Dogecoin (DOGE) Price Prediction: Will the Meme Coin Rise or Fall?

Dogecoin, the market's leading meme cryptocurrency, finds itself at a critical price juncture that could determine its short-term trajectory.

Dogecoin (CRYPTO: DOGE) is testing a crucial resistance area that could determine its short-term price trajectory, technical analysts warned.

What Happened: As of March 24, Dogecoin was trading at $0.1847, showing a 5.69% gain in 24 hours. It currently ranks as the 8th largest cryptocurrency with a market cap of $27.44 billion.

Trading volume for DOGE has surged by 123.45% to $1.58 billion over the past day. This spike in trading activity indicates growing investor interest, possibly driven by positive market sentiment.

The “World of Charts” analysis account on X (Twitter) highlighted that Dogecoin is attempting to break above a downward trendline that has acted as resistance for several months.

This breakout level sits around $0.18 to $0.19. If DOGE can push through this range, it could generate strong buying momentum and potentially double in price.

Testing Crucial Multi Resistance Area, After Successful Breakout It Can Easily Give 2x.

Another analyst, Trader Tardigrade, observed that Dogecoin’s current price action is similar to patterns seen during previous bull cycles. The analyst noted similarities to the 2017 and 2021 market movements when DOGE saw major price increases.

On March 24, Dogecoin briefly touched $0.1887, nearing the resistance level highlighted by crypto analysts.

Sustained momentum above this point could trigger a major price surge. However, not all technical analysis is bullish.

A bear flag pattern on the DOGE/USD daily chart suggests a possible 30% decline in the coming weeks. This bearish pattern formed after DOGE fell from a high of $0.214 in late 2024.

Since then, the price has been consolidating between a descending upper trendline and lower support around $0.137. On March 24, DOGE tested the upper trendline but closed with a red candle.

This rejection reinforces bearish momentum and could trigger a drop to $0.11 if the lower trendline breaks.

Technical Indicators: Technical indicators support this bearish outlook. The Relative Strength Index (RSI) has fallen from 58.71 to 47.45, showing weakening buying pressure.

A recent death cross between DOGE’s 50-day and 200-day moving averages further strengthens the bearish case.

The Dogecoin Foundation recently announced the creation of an "Official Dogecoin Reserve" and purchased 10 million DOGE coins to enhance stability and attract institutional interest in the cryptocurrency.

This initiative, known as House of Doge, also invested $1.8 million to make Dogecoin faster and more usable for everyday transactions. The aim is to speed up blockchain settlements and make payments more efficient for businesses and consumers.

Michael Galloro, a board member-elect at House of Doge, believes the reserve will increase Dogecoin’s appeal as a practical payment method, and the organization plans to push for broader use of DOGE in global payments.

Unlike Bitcoin’s fixed supply, Dogecoin’s inflationary model makes it well-suited for daily transactions. To encourage adoption, House of Doge is planning cashback incentives and merchant partnerships.

Interest in Dogecoin extends beyond businesses. The Dogecoin Foundation reportedly had discussions with US government representatives about using DOGE for everyday payments, such as city parking and utility bills.

Three Dogecoin-related exchange-traded fund (ETF) applications are currently pending with the US Securities and Exchange Commission. Bloomberg analysts estimate a 75% chance these DOGE ETFs will be approved by year-end.

Dogecoin’s price is currently consolidating in a symmetrical triangle pattern. Some experts predict that if a bullish breakout occurs, DOGE could rise by 16%, reaching between $0.19 and $0.20.

External factors may also influence DOGE’s price. Elon Musk’s close association with Dogecoin has historically linked the cryptocurrency’s performance to his business ventures, particularly Tesla (NASDAQ:TSLA).

Tesla’s stock has fallen drastically by over 50% since late 2024 due to declining sales, production challenges, and Musk’s political involvements.

Considering Dogecoin’s correlation with Tesla, this stock crash could be a major setback for long-term confidence in DOGE.