Dogecoin Dumps But Hold Key $0.35 Support – Wen $1?
The Dogecoin (DOGE) price took a beating on Wednesday, dumping one 9% as risk assets slumped across the board following a more hawkish than expected policy announcement from the US Federal Reserve.
The Fed cut interest rates by 25bps but pushed back against expectations for a continuation of rapid interest rate cuts in 2025.
What just happened?
The Fed cut interest rates by 25 basis points which is exactly what 97% of market participants wanted.
But, the S&P 500 just posted its largest post-Fed drop since March 2020, erasing $1.8 TRILLION of market cap.
Why? Let us explain.
(a thread)
— The Kobeissi Letter (@KobeissiLetter) December 18, 2024
Despite the sharp intra-day decline, the Dogecoin price is holding above support in the form of the 50DMA and its recent range lows around $0.35 for now.
After such a strong rally in recent weeks since Donald Trump’s election victory in early November, some are concerned that a deeper retracement could be on the cards in the short term.
$0.33-35 has been a key level for Dogecoin going all the way back to mid-2021. Should this level go, the Dogecoin price would be at risk of a sharp dump back towards its early 2024 highs in the $0.23 area.
While Dogecoin investors might need to brace for a short-term market dip, there remains plenty of reason to be optimistic on the cryptocurrency’s chances for 2025.
Here’s why.
Bullish Dogecoin Price Outlook for 2025 – When Will DOGE Hit $1?
Dogecoin has two main factors that are playing in its favor.
Firstly, the arrival of the Trump administration and a new US Congress is expected to usher in a new golden age for the crypto industry in the US.
Meanwhile, chatter about the establishment of a US strategic reserve in the US and in other major nations continues to grow.
These combined factors suggest there is massive potential for price growth ahead for major cryptocurrencies – as the number one meme coin, Dogecoin is in a prime position to benefit.
Secondly, Dogecoin is inexorably tied into the new Trump administration, with Elon Musk’s new Department of Government Efficiency (D.O.G.E.) named after it.
Department of Government Efficiency pic.twitter.com/HFeHYNIkJN
— Elon Musk (@elonmusk) September 7, 2024
Musk has been a long-term supporter and proponent of Dogecoin. The world’s largest meme coin is all but guaranteed to retain a leading portion of mind share in the meme coin market as Musk’s D.O.G.E. makes headlines, for better or for worse.
So, assuming everything goes to plan – Bitcoin reserves are established and the crypto industry booms – in the coming years, it’s probably just a question of when, not if, Dogecoin hits $1.
Analyzing Dogecoin’s relationship to Bitcoin during the last three market cycles can help us answer this question.
During the past three market cycles, when Bitcoin (BTC) entered a new phase of price discovery (as it did in April 2017, December 2020 and just recently in November 2024), Dogecoin has always still been languishing well below its record highs.
This time is no different. But during the past two market cycles, it only took the Dogecoin price between 1-3 months to catch up and break out to its own record highs.
So, assuming history does repeat itself, a DOGE breakout could be coming as soon as early 2025, with $1 likely to be quickly hit.
Does This Vote-to-Earn Meme Coin Have Even Bigger Upside Potential?
Dogecoin could easily more than 2x in 2025 to hit $1. But there are many smaller, lesser-known meme coins that could post far larger gains.
The team at cryptonews.com keeps a close eye on the meme coin market as they hunt for high-potential projects.
And one new meme coin they like a lot is an exciting new DAO-powered vote-to-earn meme coin called Flockerz (FLOCK).
One of the reasons analysts at cryptonews.com are so excited about this token is the impressive pace at which is has been raising funds from earlier investors.
Despite only launching a few weeks ago, Flockerz (FLOCK) has already attracted over $7 million from eager buyers.
🔥 The Flock is growing day by day! 🔥
7M raised and this flocks here to stay! 🐦📈 pic.twitter.com/a8gFhYt4P8
— Flockerz (@FlockerzToken) December 17, 2024
Couple that with its impressive social media metrics, and this token is looking like a meme coin that could really pop.
With new meme coins like Fart Coin recently hitting a $1 billion market cap, the appetite for novel new meme coins appears elevated. FLOCK could easily become one of the best meme coins to launch in 2024.
ClayBro outlines in the video below why he thinks the token has 25x potential.
Source: cryptonews.com
