Dogecoin Price Dips Amid Bullish Signals: A Rebound in the Making?

The original meme-inspired cryptocurrency, Dogecoin ($DOGE), has shown considerable movement on the charts and has experienced a little price pullback, which now seems to be reversing.

Several key market signals and historical trends indicate that this iconic canine-themed crypto asset is positioned for a potential rebound. Let’s take a closer look at what Dogecoin is doing these days and why it has such a steadfast grip on the imagination of many in the cryptocurrency market.

The TD Sequential indicator on the hourly chart has issued a buy signal for Dogecoin, suggesting that some upward price movement could be on the way. This signal comes as the price of Dogecoin has dipped—down 3.16% and settling at $0.3476. Although Dogecoin has broken through two distinct support levels at $0.3579 and $0.3516, several market indicators are now suggesting that bullish momentum is building.

DOGECOIN OPEN INTEREST SIGNALS CONFIDENCE

Dogecoin’s price dipped 3.16% to $0.3476—but key market signals suggest a rebound is in play.

Despite breaching support at $0.3579 and $0.3516, DOGE’s open interest surged to 12.74 billion DOGE—signaling bullish conviction.

With a 14%… pic.twitter.com/7RuOTv1hXE

— IBC Group Official (@ibcgroupio) January 25, 2025

This optimism is being reinforced by a standout metric: Dogecoin’s rising open interest. With an amazing 12.74 billion DOGE in open interest, confidence appears to be building among traders and investors. This almost seems like a setup for a price recovery.

Current market signals are reinforced by Dogecoin’s past performance. The 2021 bull market saw Dogecoin reach an incredible height. Dogecoin shot up over 10,000 percent in just 98 days. This staggering rally not only pushed Dogecoin more into the mainstream but also solidified its top-10 ranking. By market capitalization, it is one of the 10 largest cryptocurrencies.

During the 2021 bull cycle, #Dogecoin $DOGE skyrocketed by over 10,000% in just 98 days. pic.twitter.com/ReOkOXEwPl

— Ali (@ali_charts) January 25, 2025

Although there is no assurance that future results will be like those in the past, the sudden and dramatic heightened price of Dogecoin has excited traders to the point that they are speculating rather intensely that it will do the same thing in the near future that it did in early January and again in late January through early February.

The bullish story of Dogecoin is enhanced by the performance of the cryptocurrency in 2025. With a year-to-date (YTD) price increase of 14%, it has shown remarkable strength in a very volatile market. But unlike most of the year’s rallying altcoins, this one has moved up without much retail interest—quite the opposite, in fact, as we have seen diminished social media presence for the memecoin. Instead, it has attracted the eye of the whales.

Bullish signs typically present themselves when whales are active, but this is not always the case. Sometimes, whales can indicate an asset is under pressure. The activity of whales in the past few days specially in accumulating Dogecoin at a pace not seen before, is most certainly a bullish sign. But why?

Another thing that could push Dogecoin’s momentum is the increasing speculation of a Dogecoin exchange-traded fund (ETF). Again, while nothing has been confirmed, and it might be a ways off yet, the crypto community seems abuzz with the possibility of this kind of development.

A Dogecoin ETF could open a new path for institutional and retail investors to gain exposure to the Dogecoin asset. By doing so, it could further legitimize Dogecoin and dramatically increase the asset’s market accessibility. A Dogecoin ETF could serve as a significant price catalyst, much like Bitcoin ETFs have in the past.

Even with the recent price dip below key support levels, Dogecoin still faces challenges. In the short term, the recent bearish signals seem to be putting a decent amount of pressure on the price. Meanwhile, overall market conditions remain as volatile as they have been for quite some time. What’s more, some critics have been pretty vocal about questioning Dogecoin’s long-term viability, given how much it appears to be driven not by fundamentals but by the kinds of memes that are often associated with pretty lame NFTs.

Undoubtedly, Dogecoin remains a well-loved player in the crypto space. Its unexpected rise to the mainstream concomitantly brought with it a revitalized interest in the coin itself. As with any viral success story, its journey in today’s crypto market can be viewed through the lens of its price action. But Dogecoin’s is a tale best told through the prism of its community, charitable initiatives, and newfound use cases elements of which sustain the coin’s crypto cred and could help it remain part of the conversation going forward.

Though Dogecoin’s price has taken a little dip, the asset seems to be indicating that it is about to blast off. Market signals point to a buying opportunity. The TD Sequential, a technical market indicator, is sending a buy signal. Meanwhile, open interest in Dogecoin knows no bounds. Accumulation of the asset by whales—traders who hold large amounts of a given cryptocurrency—continues apace. And considering Dogecoin’s historical volatility, if it is primed to take off, the gains will be both quick and substantial.

In addition, the mounting conjecture concerning a Dogecoin ETF might amplify things, possibly sending fresh investor interest and market momentum our way.

As always, caution should be exercised by traders and investors when it comes to the volatility of the cryptocurrency market. Still, for those who have faith in Dogecoin and its future potential, the latest dip in its price could serve as an opportunity to set themselves up for possible gains down the road. Will Dogecoin’s current momentum yield a return commensurate with its peak performance back in 2021? That question is sort of the basis for investing in anything, really: We do it in the hopes that something will yield a return, and we frame our hopes and dreams in a kind of narrative that makes us feel good about the decisions we’ve made.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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