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

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

Last at $0.2470, DOGE is approaching a retest of its 200-day moving average (DMA) 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 21-day moving average (DMA).

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–$0.24 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 might easily start throwing in the towel, and prices could rapidly dump all the way down towards the mid-$0.10.

Alternatively, if the price enjoys a strong rebound, as was seen at the start of February, this could signal the robustness of the rally over the previous six 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 near multi-decade highs and the Fed’s rate-cutting cycle potentially looking to have already ended.

Alt-coins and meme coins are likely to perform much better in an environment of easing monetary 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 might create a strategic Bitcoin reserve, states are also moving to arrange their own strategic reserves, and major altcoins could soon secure spot ETFs.

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

BREAKING: SEC acknowledges Grayscale’s spot #Dogecoin ETF!
Drop a LIKE if you believe Elon Musk and Donald Trump will pump $DOGE to a $1 in 2025 pic.twitter.com/WwDjVy9XBv

— Doge Lord (@DogeLord) February 16, 2025

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

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

January just set a record for the most amount of tokens created in a single month with +600k new launches.
When compared to the average of 50k tokens created per 30 days in 2022, it’s clear why we aren’t getting traditional alt seasons anymore… pic.twitter.com/RoimmxShwP

— Miles Deutscher (@milesdeutscher) February 18, 2025

Certainly, 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 well-known individual with the biggest brand title in the world, so no future meme coin launches are likely to match the TRUMP token.

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

This presents a clear risk to the Dogecoin price outlook in 2025, though Dogecoin’s first-mover advantage, backing from Elon Musk and large community implies that it’s assured to retain a significant control position in the meme coin market.

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

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