The meme coin market is on a strong run in early 2025, as the price of Dogecoin (DOGE) has increased by about 3% for two consecutive days, although the world's largest meme coin is currently struggling with resistance around $0.34. The price of Dogecoin (DOGE), currently at around $0.3360, failed to break above the 21-DMA earlier in the day.

But after breaking out of December's downtrend a few days ago, Dogecoin bulls will be optimistic that the recent modest rally could accelerate in the coming days.

Resistance in the form of some recent lows and the 50-day moving average (DMA) between $0.365-$0.38 could pose problems for the bulls. But the likelihood of Dogecoin's price rising in the short term is much higher than the likelihood of its price falling.

Why the price of Dogecoin is more likely to rise than fall

The 14-day RSI of DOGE has dropped to near oversold levels as the price of Dogecoin hit a low of about $0.26 at the end of December.

When looking at the relationship between the price of Dogecoin and RSI over the past few months, the lows of the RSI tend to form at the same time as the lows of the price of Dogecoin and thus act as a good buy signal.

In that interpretation, the RSI index dropping at the end of December could be a good buy signal.

Analyzing the fundamental context of the market aligns with the view that now may be a great time to buy Dogecoin (DOGE).

The Trump administration's support for cryptocurrency will take office at the White House in less than three weeks, opening a new golden era for the U.S. cryptocurrency industry and the market in general.

The price of Bitcoin (BTC) is expected to rise this year, especially if the U.S. establishes strategic Bitcoin reserve funds.

Altcoins could even perform better, as the current SEC chairman is Gary Gensler, who opposes cryptocurrency and dislikes altcoins, will be leaving on January 20 to make way for a much more cryptocurrency-friendly ally of Trump, Paul Atkins.

That means an altcoin season could be approaching, which also means a meme coin season.

And Dogecoin is set to continue being a leading force in the meme coin market. It remains the largest coin by market capitalization, with a value of nearly $50 billion, accounting for about 50% of the circulating meme coin market cap according to CoinMarketCap.

This leadership could further develop in 2025, when the Department of Government Efficiency (DOGE) led by Elon Musk begins its controversial work and starts to dominate the headlines.

This ensures that Dogecoin will maintain its leading market share in the so-called 'mind share' of the meme cryptocurrency market, ensuring strong performance.

There are many reasons to be optimistic about the current price of Dogecoin. So, how high can the price go?

How high could the price of Dogecoin rise by 2025?

Assuming meme season returns, DOGE is likely to retest the 2021 highs and will do so very quickly.

Additionally, the $1 level that Dogecoin investors have long desired is very likely to be reached in the coming months.

But does that mark the end of the Dogecoin bull market? History shows that this is unlikely and Dogecoin could rise much higher than many can fathom.

Consider the last two Dogecoin price rallies. In both the 2017 and 2021 cycles, Dogecoin far exceeded the Fibonacci extension level of 4.236 from previous record highs.

Could profits have diminished as Dogecoin has become an asset worth nearly $50 billion? Possibly.

But if Dogecoin can only reach the Fibonacci extension level of 4.236 after the 2021 high, that means the price of Dogecoin will be around $3 and the market capitalization will be nearly $450 billion.

This figure seems too high. But if Bitcoin reaches $500,000 in this cycle amid the establishment of strategic Bitcoin reserve funds worldwide, it would imply a market capitalization of about $10 trillion. Dogecoin has exceeded 5% of Bitcoin's market capitalization in the past and could continue to do so in the future.