Dogecoin (DOGE) Price Prediction: Will It Recover from the Recent Dip?

Just a few days ago, there were headlines that Grayscale Investments created a Dogecoin-based new investment fund. They stressed how DOGE has transformed from a mere meme coin into a recognized financial instrument.

Headlines a few days ago announced that Grayscale Investments created a new Dogecoin-based investment fund. They highlighted DOGE’s transformation from a meme coin to a recognized financial instrument.

Fundamentally, Dogecoin has gained strong industry standing, boasting a growing user base. Its low transaction fees and fast processing times are catering to underprivileged banking users, enabling their entry into mainstream finance.

Despite those positive fundamentals, the Dogecoin price has taken a sharp downturn, highlighting why it is often labeled as a volatile crypto. Recently, the entire altcoin market suffered as a result of an executive order from Donald Trump that imposed trade tariffs.

As a result, Ethereum dipped below all major EMA bands (20-day, 50-day, and 200-day), and DOGE followed suit. Just days prior, there was a wave of optimism, with many traders betting that the rally seen in Q1 of 2024 could be replicated in Q1 of 2025.

Amid the fall, some bullish investors are stepping in to buy the dips, believing that current prices are discounted. But now, pessimism is increasing as the DOGE price is below the 200-day EMA, and previous optimism seems to be fading away.

Every crypto-enthusiast is asking: will the altcoin market, including Dogecoin, recover from this recent dip? Keep on reading to find out how DOGE may perform in the coming days and weeks.

What Brought This Chaos onto the Crypto Market, Including Dogecoin?

According to data from IntoTheBlock, the correlation chart reveals that Dogecoin has a strong correlation with Ethereum, registering a value of 0.67. It suggests that DOGE tends to move in tandem with ETH, likely reflecting similar market reactions during the same time periods.

Such strong correlations indicate that when the Ethereum price shifts, altcoins like Dogecoin follow suit. This trend became particularly evident following recent actions by the 47th President, Donald Trump.

The president imposed trade tariffs on Canada, Mexico, and other nations under Section 232 of the Trade Expansion Act. He did that, quoting concerns over immigration and illegal drugs entering the U.S.

These new trade tariffs sent shockwaves through the financial markets, resulting in a sharp decline in stock prices and a subsequent drop in cryptos.

As a result, Bitcoin experienced a significant fall of over 10%, breaking through its short-term 20-day and 50-day EMA bands. However, it managed to remain above the long-term 200-day EMA.

In contrast, Ethereum faced an even harsher reaction. The ETH price broke through both short and long-term EMA bands, signaling a strong bearish trend with an intraday dip exceeding 30%.

The Dogecoin price also mirrored this decline, falling by 35% in the trail of Ethereum’s downturn.

Why Dogecoin ETF Applications Approval Odds Could Be at Risk?

According to Polymarket, the odds of a Dogecoin ETF being approved by July 31, 2025, have plummeted from 37% to 28% in just a few days. It marked a significant 9% decline.

In January, the sentiment was more optimistic, with increasing odds fueled by a favorable market atmosphere and the SEC’s decision to repeal SAB 121. Before, financial institutions were putting a fair value on the assets they held on balance sheets.

Many believed that positive developments were on the horizon, but days later, the situation took a turn as large transactions began flooding exchanges across various altcoins. Those were driven by fears of impending trade wars following Donald Trump’s recent signing at Mar-a-Lago.

Meanwhile, companies like Bitwise and REX Shares have already submitted their applications for Dogecoin ETFs to the SEC. The prospects for approval now seem uncertain.

Market analysts, including ETF expert Nate Geraci, had previously speculated that Grayscale Investments would eventually convert its Dogecoin Trust into an ETF, following its history with other ETF products. Yet, the chances for ETF approval appear slimmer now with recent market changes.

Dogecoin’s high volatility, strong correlation with Ethereum, and nature as a meme coin are significant factors that could be influencing regulatory decision-making in ETF proposals.

Recent chart activities have only heightened this pessimism, as the volatility has triggered stop losses and wiped out the accounts of many traders. As of now, the Dogecoin price continues to follow Ethereum’s price movements, with both cryptocurrencies attempting to recover.

Will trade war concerns affect the Dogecoin price more, or will it find a resurgence based on its fundamental strengths? DOGE price’s future trajectory will largely depend on the overall market trend.

In this article, the views, and opinions stated