Why the Doge price is still pushing towards $2
Although the Doge (DOGE) price has fallen 5% in the past 24 hours, multiple technical indicators and on-chain data suggest that Doge may soon reach a new all-time high.
In the past 24 hours, the Doge price has dropped over 3.5%, falling to $0.3663, even as the broader cryptocurrency market has generally recovered, rising around 3% over the same period and the total market cap rebounding to $3.62 trillion.
While the DOGE's current trading price is 33% lower than the multi-year high of $0.4846 set on December 8, 2024, multiple factors support the potential for further upside in Doge.
DOGE/USD daily chart. Source: Cointelegraph/TradingView
Increased whale activity driving DOGE price higher
One of the key drivers behind the Doge price surge today is the significant increase in whale (large crypto holders) activity.
Over the past 24 hours, whale transactions related to Doge have spiked significantly. Data from Santiment shows that the activity of whales holding between 10 million to 1 billion DOGE has risen.
The chart trend shows that DOGE whale activity increased on January 21. These whales have added around 590 million DOGE tokens (worth around $214 million at current rates) in the past 24 hours, coinciding with the rise in Doge price over the same period.
Number of wallets holding between 10M and 1B DOGE. Source: Santiment
This increased buying activity suggests that large investors accumulated Doge when the price dipped to $0.33 on January 21, implying this group expects higher prices ahead.
Launch of the official U.S. DOGE website
Another factor boosting investor sentiment is the appearance of the Doge logo on the official website of the newly formed U.S. Department of Government Efficiency (D.O.G.E.), established by U.S. President Donald Trump via executive order on January 20.
After the website went live on January 21, the price of DOGE surged 13% within minutes.
Although the website no longer displays the Doge logo, the event has brought unprecedented attention to Doge and associated it with the government initiative led by Elon Musk, who is known for his affinity for Doge.
Meanwhile, speculation about potential Doge exchange-traded fund (ETF) filings and approvals is also increasing. Following the departure of former U.S. Securities and Exchange Commission chair Gary Gensler, the crypto market has seen a wave of ETF applications, fueling hopes that a DOGE ETF could be quickly approved after Bitcoin and Ethereum ETFs.
Source: Cointelegraph
Bloomberg senior ETF analyst Eric Balchunas stated that a DOGE ETF, if approved, "could list as early as early April."
ETF approval would provide a regulated investment vehicle for traditional investors, potentially increasing Doge's exposure and legitimacy in the broader financial realm, driving up demand and pushing the price higher.
DOGE price pattern expected to range between $0.95 and $2
Independent crypto trader and investor Chandler emphasized that DOGE's recent price action is part of an accumulation trend that has been in place since 2021.
The Mayer Multiple Bands indicate that the current price is at the same level as January 2021, "accumulating between the yellow and orange lines," the analyst stated, adding:
"If it breaks the red line today, $DOGE will rally to $0.95."
With market momentum clearly strengthening, anonymous crypto commentator WSB Trader stated that the Doge dip to $0.33 on January 21 provided a good buying opportunity, and expects DOGE to rise to $1.
Source: WBS Trader Rock
Meanwhile, technical analyst Trader Tardigrade Mikybull provided an even more ambitious prediction, suggesting a potential breakout of a bullish flag pattern with a target price of $2.
"Doge has formed a bullish flag pattern on the 2-day chart. The target price of this $DOGE bullish flag pattern is above $2."
DOGE/USD two-day chart. Source: Trader Tardigrade
