Dogecoin Price Forecast: DOGE Soon Headed for $0.310 Support

Highlights:

• Dogecoin price is trending towards the $0.310 support
• Correction driven by the sustained selloff across the market
• DOGE could test and breach $0.310 support if Bitcoin loses $92k support

Dogecoin (DOGE) is in the red today. That is quite expected, given that most asset prices have started the week in the red. Today, the total cryptocurrency market has shrunk by 2.04% to $3.23 trillion. Bitcoin, the main market direction determinant, has dropped 7% in the day and continues to drop.

These market dynamics have pushed Dogecoin lower by 4.52%, and at the time of going to press was trading at $0.320. However, investor interest in Dogecoin remains elevated as evident in the fact that on CoinMarketCap, 87% of investors are bullish on Dogecoin. The high investor interest in Dogecoin is also collaborated by 24-hour trading volumes which have surged by 27% in the day to hit a high of $2.08 billion.

Top Meme Coins by Trading Volume (Last 24H):

1. #DOGE: $6.44B
2. #PEPE: $0.96B
3. #SHIB: $0.77B
4. #WIF: $0.50B
5. #BONK: $0.49B#Dogecoin is dominating the #memecoin market, but PEPE and SHIB remain strong contenders.
Which one are you watching?👀👇 pic.twitter.com/XfUYbU14z1

— Cryptocurrency Inside (@Crypto_Inside_) January 6, 2025

Technical Analysis – Dogecoin Price Headed for Key Support as Bears Take Control

From the charts, the odds are high that Dogecoin’s ongoing correction could continue in the short term.  Dogecoin, driven by the selloff across the market, is trending towards the $0.310 support and with high volumes. If Bitcoin loses the $92k support, the entire altcoin market could push much lower. This could see Dogecoin push through the $0.310 support.

In such a case, Dogecoin could drop to prices below $0.25 in the short term. On the other hand, if Bitcoin bounces off the $92k support, a rebound for Dogecoin could follow. In such a case, the key level to watch for Dogecoin would be the $0.397 weekly resistance.

A breach of the $0.397 resistance could see Dogecoin test $0.50 in the short term. Failure to breach the $0.397 resistance could see Dogecoin consolidate between the $0.397 resistance and $0.310 support.

Bitcoin Putting Pressure on Altcoins

Of the three scenarios that are presenting themselves on Dogecoin’s charts, the odds are high that bears could put pressure on the price in the short term. Bitcoin’s selling pressure has seen momentum decline in the riskier aspect of the market, especially the meme coin market.

Dogecoin, being a meme coin, is unlikely to see any action until the broader market turns strongly bullish again. This adds credence to the fact that Dogecoin could be headed for a breach of weekly support in the short term.

Trump Inauguration Could Reverse Dogecoin Fortunes

However, there is hope for Dogecoin in the medium term. One of the factors that could trigger a surprise bullish reversal for Dogecoin is the upcoming inauguration of Donald Trump. Trump is pro-crypto, and his election triggered a marketwide rally between November and December 2024. 

The cryptocurrency industry is already calling for an executive order to establish a Bitcoin reserve. If this happens immediately after his upcoming inauguration, it could trigger a sudden Bitcoin surge through the $100k mark again. It could also uplift the entire market, and that includes DOGE, which is one of the best meme coins in the market today.

The Elon Musk Link a Plus for Dogecoin

Doge also has the advantage of being linked to Elon Musk. Elon Musk is tasked with leading The Department of Government Efficiency (DOGE) in the upcoming administration. Given that he has helped pump Dogecoin in the past, his new role and a name that mirrors Dogecoin’s price could trigger a pump.

This is likely to happen if Musk is given this role immediately after Trump takes office. Given his closeness to the incoming president, there is a good chance that DOGE will be actualized soon.