Bitcoin has rebounded to over $100,000, expected to spark a bullish wave in the market. While other tokens have failed to maintain momentum, Dogecoin is striving to maintain a strong upward trend. Since the beginning of 2025, the price has been struggling to rise above $0.4. Although recent whale movements indicate that significant actions are imminent, the technical indicators suggest a broader correction is approaching.
What is the next step for Dogecoin (DOGE) price increase? Will it trigger a healthy rise to $1 in 2025?
Retail traders typically follow whales, considering it an important signal for the next price action. With the rise in whale accumulation rates, the optimism surrounding the token has surged, positively impacting the DOGE price. Whales have been continuously accumulating DOGE throughout 2024 and stopped their accumulation in November; meanwhile, they have recovered and exceeded the levels of the 2021 bull market. Currently, over 5,000 wallets hold more than 1 million DOGE, sending a significant bullish signal.
On the other hand, retail traders are hesitant to enter the market as the number of active addresses remains within average ranges. This is mainly because the technical indicators do not support a bullish narrative. The TD Sequential indicator, which points to the exact timing of trend reversals, remains bearish, suggesting that a price pullback is expected. Additionally, the weighted social sentiment is around 0.60, indicating that the crowd remains pessimistic about Dogecoin's upside potential. What is the next step for Dogecoin's price increase?
The DOGE price chart shows that bulls are struggling to maintain a bullish trend, as the rebound has been trying to defend the 50-day moving average. These levels provide a strong foundation, but the price has failed to trigger a strong rebound to higher ranges. This may be due to declining trading volumes hindering the progress of the rebound. Meanwhile, the incremental RSI seems to have halted this trend, confirming the bearish narrative.
Regardless of all the bearish narratives, if the price of Dogecoin breaks through $0.786 FIB to $0.4 in the next few hours, it may still suppress this narrative. This move could pave the way for a healthy upward trend, potentially reaching a peak of $0.55 in 2024, while a new ATH of $1 remains quite apparent.