Dogecoin (DOGE) had a fairly successful year in 2024. The price of this asset skyrocketed after Donald Trump won the U.S. presidential election. The sudden rise of DOGE might be due to Elon Musk's support for Trump's campaign. This tech billionaire is one of the strongest supporters of DOGE. Investors' confidence in the memecoin has significantly increased due to his support for Trump's presidential campaign.
Price Volatility of Dogecoin
Despite an incredible performance in November 2024, DOGE has faced significant price adjustments in recent weeks. DOGE is down 2.4% on the daily chart, 20.7% on the 14-day chart, and 24.8% compared to last month. The memecoin is still up 3.4% on the weekly chart and nearly 255% on the yearly chart.
The latest adjustment of DOGE occurred in the context of Bitcoin (BTC) falling below $94,000. BTC had to adjust after inflation in the United States rose to 2.7%. The Federal Reserve has taken a tough stance on its monetary policy. The Fed has only announced two interest rate cuts for 2025 after the most recent FOMC meeting. This development has made market participants weary of risky assets.
3 Reasons Why DOGE Could Reach $1 by 2025
1. The combination of DOGE
President-elect Donald Trump announced the establishment of the Department of Government Efficiency (DOGE) with Elon Musk and Vivek Ramaswamy at the helm. As this department becomes operational, Dogecoin (DOGE) could see a strong price increase.
2. Integration with X
There is a lot of discussion about DOGE being integrated into the payment platform of X. If successful, the memecoin could see a sudden increase in use cases. This development could lead to a significant price increase for the asset.
3. More adoption
The year 2025 could witness greater acceptance of DOGE. The popularity of the memecoin continues to rise over time. With cryptocurrency-supportive leadership in the United States, we may see more acceptance of cryptocurrency. Such a scenario could lead to a market-wide price surge.
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