Dogecoin (DOGE) Has Seen a Sharp 38% Decline in the Past Month, Wiping Out Its Annual Gains Despite Multiple Catalysts for a Broader Crypto Market Rally

Launched in March 2015, Dogecoin traded relatively flat until May 2021.

Dogecoin (CRYPTO: DOGE) has seen a sharp 38% decline in the past month, wiping out its annual gains despite multiple catalysts for a broader crypto market rally.

What Happened: Launched in March 2015, Dogecoin began its journey with relatively flat price action. Its biggest rally occurred in May 2021, following Elon Musk's appearance on Saturday Night Live, where he called it a "hustle," ultimately sending DOGE to an all-time high of $0.7376. Currently, DOGE is trading around 77% lower at $0.154.

In December 2024, Dogecoin experienced another surge, driven by a broader crypto market rally, leading to a 240% price increase from November 2024 lows. A third major rally happened in January 2025 as traders buzzed about the possibility of a new ATH.

Despite these price surges, Dogecoin struggled to maintain momentum, even after the creation of the Department of Government Efficiency (D.O.G.E.), led by Elon Musk, and the meme coin's adoption in political and institutional circles.

The hype surrounding Dogecoin's potential for political donations and integration into institutional investment vehicles wasn't enough to keep prices elevated.

Also Read: Unprecedented 400% Surge In Dogecoin Network Activity: Is This A Bullish Move?

Why It Matters: As Grayscale continues to expand its crypto offerings, the firm has also applied for approval to launch a Bitcoin ETF, further highlighting the increasing demand for institutional-grade crypto products.

Grayscale’s initiative to launch a Dogecoin Trust comes amidst growing interest from institutional investors in meme coins. Earlier this year, Mike Novogratz's crypto hedge fund, Galaxy Digital, applied for approval to launch an Ethereum futures ETF.

Dogecoin, known for its widespread accessibility, affordability and rapid transaction speeds, has also managed to garner significant adoption in various parts of the world.

Speculation about a Dogecoin ETF is heating up, as Bitwise, Rex Shares, and Osprey Funds have all filed S-1 applications for approval.

What's Next: With uncertainty still hanging over the broader crypto market, altcoins remain in limbo, waiting to rally alongside Bitcoin.

Crypto analyst Ali Martinez has pointed out that Dogecoin is now at a critical juncture, facing an important test: will it break out or hold firm at current levels?

#Dogecoin $DOGE at the edge, facing a big test.

Will it break out or stand firm?

After a 38% correction in a month, Dogecoin is at a crucial point. Breaking the trendline could lead to further declines.

Alternatively, if it manages to hold onto the support level (marked in blue), it could signal a potential bottom and set the stage for an ascent.