Dogecoin (DOGE) Price Approaches Key Technical Level – Here’s Where Its Headed Next

Dogecoin (DOGE) Price Approaches Key Technical Level - Here’s Where Its Headed Next / Source: TradingView

The Dogecoin (DOGE) price is on the cusp of testing a key technical level that, depending on its reaction, could have a meaningful implication on its medium-term outlook.

Last at $0.2470, DOGE is approaching a retest of its 200DMA at $0.2360.

The Dogecoin price has been in a downtrend, in tandem with the broader meme coin market, since Trump’s meme coin launch in mid-January, with its near-term bearish bias confirmed by recent rejections of its 21DMA.

DOGE is also on the cusp of another retest of its 2024 highs in the $0.2250 area.

How the Dogecoin price responds when it retests this key area of resistance around $0.22-24 will be key to its longer-term outlook.

A convincing and sustained break below here would throw Dogecoin’s “bull market” into serious doubt.

Speculators could easily start throwing the towel in, and prices could quickly dump all the way lower towards the mid-$0.10.

Alternatively, if the price enjoys a strong rebound, as was seen at the start of February, this would signal the robustness of the rally over the past 6 months.

Where is the Dogecoin Price Headed in 2025?

The liquidity backdrop in the USA right now isn’t the best, with US government bond yields close to multi-decade highs and the Fed’s rate-cutting cycle potentially looking to have already finished.

Alt-coins and meme coins tend to perform much better in an environment of easing financial conditions, which 2025 doesn’t look likely to bring.

So an alt/meme season like seen back in 2021 is unlikely to materialize this year.

However, 2025 promises to be a historic year when it comes to crypto adoption – the pro-crypto Trump administration could create a strategic Bitcoin reserve , states are also moving to set up their own strategic reserves, and major altcoins may soon secure spot ETFs .

This includes Dogecoin, with the SEC recently acknowledging Grayscale’s application.

2025 is thus shaping up to be a massive year for Bitcoin and major alts.

However, the outlook for the meme coin market is murkier, amid concerns that massive dilution (i.e. new meme coins constantly being created) is preventing retail from piling back into names like Dogecoin as they did in the past.

Indeed, Trump’s meme coin launch dealt a severe blow to the broader meme coin market, including to Dogecoin, as it sucked up liquidity.

US President Trump is arguably the most famous person with the biggest brand name in the world, so no future meme coin launches are likely to match the TRUMP token .

That said, 2025 could see a wave of celebrities, brands and influencers launching tokens and sucking up liquidity from retail that, in past cycles, may have gone to coins like Dogecoin.

This presents a clear risk to the Dogecoin price outlook in 2025, although Dogecoin’s first-mover advantage, backing from Elon Musk and huge community means that it is guaranteed to retain a major leadership position in the meme coin market.

If/when meme coins do rebound, expect DOGE to be right at the forefront, especially with Musk’s Department of Government Efficiency making headlines every week.