- Dogecoin faces a tough bear market but could surge to $1 in 2025 with key catalysts.
- Dogecoin’s recovery is supported by Elliott Wave analysis and potential SEC approval of a spot ETF.
Dogecoin (DOGE) has faced a tough bear market this year, dipping from a high of $0.4845 in December to a low of $0.265. The price drop is largely due to the broader crypto market struggles, as Bitcoin’s stagnation continues to set the tone. Despite this, DOGE’s price might surge back to $1 in 2025, and here’s why.
Dogecoin Price Decline: What Went Wrong?
The primary reason for DOGE’s decline is Bitcoin’s lack of movement. Bitcoin has been stuck in a narrow price range between $90,000 and $109,000. When Bitcoin stagnates, altcoins like Dogecoin often follow suit.
Another factor is the “sell the news” effect. DOGE saw a price spike ahead of Donald Trump’s inauguration in January, primarily due to his appointment of Elon Musk to head the Department of Government Efficiency (DOGE). While the announcement caused a brief rally, it led to a price drop when the event took place.
Lastly, the fear and greed index has dropped significantly, signaling investor caution. The market’s shift from extreme greed to fear has put many investors on the sidelines, impacting Dogecoin’s price.
Elliot Wave Analysis: A Rebound on the Horizon
Despite the current dip, technical analysis points to a potential Dogecoin rebound. DOGE’s price chart shows a “break and retest” pattern, often a sign of continued movement in the same direction. The current price dip is part of the second phase of the Elliot Wave pattern, which suggests that a strong rally could follow.
Elliot Wave theory consists of five phases, with the second phase being a retracement. In DOGE’s case, the second phase is almost complete, and the third phase, which is usually the longest, is expected to push the price up to $0.7600 before retracing. The final surge could take DOGE all the way to $1, marking a potential 276% increase from its current value.
Catalysts That Could Propel DOGE
Several factors could trigger a DOGE price surge in the long term. The first is the potential approval of a spot Dogecoin ETF by the SEC. If approved, this could lead to increased institutional interest, pushing DOGE’s price higher. The SEC’s positive view of Dogecoin as a proof-of-work digital commodity aligns with its stance on Bitcoin, strengthening the case for ETF approval.
Additionally, Bitcoin’s eventual price rebound will likely lift DOGE as well. With Bitcoin forming a bullish flag pattern, a breakout in its price could trigger a surge in the entire cryptocurrency market, including Dogecoin.
What’s Next for Dogecoin?
Dogecoin’s future looks promising despite its recent struggles. The ongoing retracement is just a part of the coin’s recovery process. With a potential ETF approval and Bitcoin’s eventual price breakout, DOGE could be well on its way to reaching $1 in 2025. However, the journey will take time, and it’s crucial for investors to monitor key support levels, especially the $0.0835 mark, which would invalidate the bullish outlook.
While the road to $1 may not be immediate, the stars are aligning for Dogecoin’s eventual surge. Investors should stay alert and watch for key technical signals and catalysts that could propel DOGE back to its highs.
