In early 2025, Dogecoin (DOGE) is showing momentum, rising by around 3% for two consecutive days. However, it is facing resistance near $0.34, as the current price of $0.3360 is unable to surpass its 21-day moving average.
However, the recent breakout from its December downtrend has fueled optimism for further gains. Resistance between $0.365 and $0.38, which is linked to the 50-day moving average, could pose a challenge to the upside. However, technical indicators such as the 14-day RSI, which approached oversold levels when Dogecoin hit $0.26 in December, suggest that the uptrend could continue.
Historically, such low RSI levels have served as strong buy signals for Dogecoin. The broader market outlook also supports bullish potential. With pro-crypto policies expected under the incoming Trump administration, including a potential Bitcoin reserve, the stage is set for significant growth.
A change in the leadership of the Securities and Exchange Commission to a pro-crypto chairman could lead to a surge in altcoins, benefiting Dogecoin, the largest meme coin with a market cap of $50 billion. Elon Musk’s role in the Directorate of Government Efficiency (D.O.G.E.) could boost Dogecoin’s dominance and visibility in the market. This puts Dogecoin at the forefront of potential meme coin season.
Predictions for 2025 🔥
If meme coin enthusiasm returns, Dogecoin could return to its 2021 highs and possibly break the USD barrier. Historical trends point to further growth, with Dogecoin previously breaking the 4.236 Fibonacci extension levels in previous bull cycles.
Matching this metric above its 2021 high could push DOGE to $3, implying a market cap of $450 billion. While this scenario is ambitious, it is in line with predictions of Bitcoin hitting $500,000 and a market cap of $10 trillion. Dogecoin, which has historically been more than 5% of Bitcoin’s market cap, could maintain this trend.
These factors combined make a $3 Dogecoin price in 2025 a possibility worth considering.