Dogecoin (DOGE) price fell more than 3.5% to $0.3663 over the past 24 hours, despite a recovery across the broader cryptocurrency market, and has risen about 3% to $3.62 trillion over the same period.
DOGE is currently trading 33% below its multi-year high of $0.4846 reached on December 8, 2024, but several factors support further upside for the world’s largest memecoin.
DOGE/USD daily chart. Source: Cointelegraph/TradingView
DOGE price rises as whale activity increases
One of the main drivers of the surge in Dogecoin price today is a significant increase in the activity of whales, which are investors holding large amounts of the cryptocurrency.
Whale trading involving Dogecoin has surged significantly over the past 24 hours. Data from Santiment shows an increase in whale activity for holders with balances between 10 million and 1 billion DOGE.
The trend on the chart indicates that DOGE whale activity increased on January 21st. These whales have added approximately 590 million DOGE tokens (worth approximately $214 million at current prices) over the past 24 hours, over the same time frame.
Number of wallets holding 10 million to 1 billion DOGE. Source: Santiment
This increase in buying activity suggests that large investors accumulated DOGE when the price fell to $0.33 on January 21, suggesting that this group is anticipating higher prices in the future.
US DOGE official website launched
Additionally, the appearance of the Dogecoin logo on the website of the U.S. Department of Government Efficiency, known as DOGE, established by U.S. President Donald Trump by executive order after taking office on January 20, also boosted investment sentiment.
The price of DOGE surged 13% within minutes of the website being launched on January 21st.
Although the website no longer displays the Dogecoin logo, the event brought unprecedented visibility to Dogecoin and linked it to a government initiative led by Elon Musk, known for his affinity for Memecoin.
Meanwhile, speculation is growing about the potential application and approval of a Dogecoin exchange-traded fund (ETF). In the cryptocurrency market, ETF applications surged after former Securities and Exchange Commission Chairman Gary Gensler resigned, raising expectations that the DOGE ETF could be approved soon after the approval of the Bitcoin and Ethereum ETFs.
source: Cointelegraph
Bloomberg senior ETF analyst Eric Balchunas said that if the DOGE ETF is approved, “it could hit the market as early as April.”
relevant: Price Analysis 1/20: SPX, DXY, BTC, TRUMP, ETH, XRP, BNB, SOL, DOGE, ADA, LINK
ETF approval would provide traditional investors with a regulated investment vehicle, potentially increasing Dogecoin’s exposure and legitimacy in the wider financial world, increasing demand and driving the price higher.
The DOGE price pattern measures from $0.95 to $2.
Chandler, an independent cryptocurrency trader and investor, emphasized that DOGE’s recent price action is part of an accumulation trend that has been underway since 2021.
Mayer Multiple Bands show the price is where it was in January 2021, “accumulated between the yellow and orange lines,” the analyst added:
“If it crosses the red line today, $DOGE will rise to $0.95.”
DOGE/USD weekly chart. source: chandler
Anonymous cryptocurrency commentator WSB Trader said that with noticeable momentum growing in the market, Memcoin’s drop to $0.33 on January 21 provided investors with a nice downside before the price of DOGE rose to $1.
source: WBS Trader Lock
Meanwhile, technical analyst trader Tardigrade Mikybull set a $2 target after the breakout and offered a more ambitious outlook regarding the possibility of a breakout from the bull flag.
“Dogecoin formed a bull flag on the 2-day chart. This $DOGE bull flag pattern target is above $2.”
DOGE/USD 2-day chart. source: Merchant Tardigrade
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.