Will DOGE repeat what happened in 2023?

Only two weeks into the year 2025, the digital currency market is witnessing sharp fluctuations, as the Bitcoin currency BTC fluctuates between ups and downs. However, while most major currencies are under pressure, DOGE continues its upward trend, consolidating above the $0.30 level.

As whale buying rebounds, the RSI cools, and the BTC/DOGE pair turns green, expectations are growing among analysts that Dogecoin could repeat its Q4 2023 highs.

Is it time for the meme currency to emerge from its stagnation?

Since Q4 2023, Dogecoin has shown surprising strength, managing to remain stable between $0.30 and $0.4 despite significant market fluctuations.

While Bitcoin and other major currencies witnessed notable declines after the Federal Reserve’s statements, Dogecoin was able to remain steadfast, which reflects a strong appetite from investors to invest in the currency.

During the past 4 days, Dogecoin (DOGE) achieved daily gains exceeding 2%, reflecting a state of increasing optimism among investors. In fact, surveys have shown that 87% of the Dogecoin community are optimistic about the future of the currency in the coming period.

However, optimism is not only limited to short-term gains, it is also linked to a long-term pattern in the currency’s movement. Although meme coins may be prone to sudden fluctuations, Dogecoin follows a similar pattern to what it saw last year, where there were periods of decline followed by a stabilization phase and then sudden spikes.

Factors that support upward momentum

Dogecoin is gaining strong momentum across several major market indicators. Futures and spot trading witnessed a noticeable increase, as open interest (OI) recorded an increase of 13.48% to settle at about $4 billion, a level close to the peak it reached when the currency recorded an increase to $0.48.

It is noted that major players in the market, or what are known as whales, have intervened significantly during periods of falling prices, which has helped prevent the currency from falling significantly.

Analysis indicates that the $0.30 level is a strong support point, as the current RSI, which stands at 51, reflects signs of possible upward breakouts similar to those we witnessed last year.

Dogecoin’s connection to Bitcoin

Perhaps the most important factor determining Dogecoin’s path in the coming period is the DOGE/BTC pair. In mid-February 2024, Dogecoin began hitting record highs as Bitcoin approached its historic high of $73,000. If this relationship between the two currencies continues, we may see more bullish momentum for Dogecoin.

In order for this cycle to repeat, maintaining the $0.30 level is crucial. This level can act as a psychological boost for investors, helping maintain confidence in the currency during periods of market volatility, whether for altcoins or Bitcoin.

Future outlook

While Dogecoin continues to attract attention in the cryptocurrency markets, the coming days will reveal more details about its ability to maintain this momentum. 2025 could be the year of further diversification in the cryptocurrency portfolio, and Dogecoin may be well-positioned to take advantage of this opportunity.

With internal and external factors supporting Dogecoin, a repeat of the 2023 cycle appears increasingly likely. However, we must closely monitor technical indicators and market developments to maintain the currency’s course and ensure the continuity of this momentum.