Dogecoin Price Prediction: DOGE Could Soon Test $0.50 Today’s Correction

Highlights:

• Dogecoin price is in a correction, but bulls appear to be regaining control
• Correction was triggered by US data that sent asset prices lower
• DOGE could test $0.50 if bulls regain market control

Dogecoin (DOGE) is in the red today, down by 11% in the last 24 hours, and at the time of going to press, was trading at $0.349. However, Dogecoin trading volumes are on the rise though up by 98.93% to hit a high of $5.8 billion. This is an indicator that there is a lot of trading going on at the moment, as short-term traders exit and buyers looking to take advantage of the dip get into the market.

Dogecoin’s 24-hour price action is not an isolated incident, though. It is a reflection of the price correction that has hit the financial markets, including equities in the last 24 hours. The total cryptocurrency market has shrunk by 6.56% in the last 24 hours to stand at $3.35 trillion.

US Data Pushes Dogecoin Price Lower

Dogecoin’s price correction, alongside the broader market, has been triggered by the JOLTS report and the ISM service index, which gave unexpected results yesterday. The impact was a surge in yields as both treasuries dropped. This also hurt stocks and cryptocurrencies as reflected in the performance of top cryptocurrencies like Dogecoin in the last 24 hours.

MARKETS SELLING OFF BASED ON THIS MACRO RELEASE TODAY👇🏻

Macro data today came in a
today with non recessionary recessionary readings, but one reading spooked markets and algos a little bit initially. That reading is the “Prices paid”, this one came in significantly higher than…

— BACH (@CyclesWithBach) January 7, 2025

However, the markets appear to have absorbed this news, and a rebound is underway. This is already evident in Dogecoin’s price action in the day.

Technical Analysis – Bulls Regaining Control as Bears Falter

From the charts, Dogecoin’s correction in the last 24 hours has not been strong enough to push the price back to the $0.310 support established towards the end of December. Already, bulls appear to be fighting hard to regain control. This is an indicator that the news from the US has not broken the market structure and only presents an opportunity for long-term investors to get Dogecoin at lower prices. 

If bulls sustain momentum and push the price through the weekend high of $0.397, now resistance, the next level to watch would be the multi-week $0.467 resistance. A rally through the $0.467 resistance could pave the way for a Dogecoin price rally back to its 2021 all-time high and potentially a rally to $1.

On the flip side, if panic selling takes root across the market, the key level to watch for Dogecoin would be the $0.310 support. If this support is broken, then Dogecoin could drop to around $0.20 in the short term.

Of the two scenarios described above, the odds are higher that Dogecoin bulls will soon take control. This is evident in the fact that bulls appear to be gaining momentum on the hourly charts, an indicator that Tuesday’s correction is over.

Pro-Crypto Policies in the US to Boost Dogecoin Price

Aside from the market absorbing Tuesday’s US economic data, multiple other factors support bullish momentum for Dogecoin. One of them is the fact that expectations are high for cryptocurrencies in 2025. Donald Trump is taking office on January 20 and has promised that his administration will be crypto-friendly.

Things like the creation of a Bitcoin Reserve could trigger a significant bull rally across the market. For Dogecoin, which is one of the best-known meme coins, this could mean a rally to new historic highs in the foreseeable future.

DOGE Hype Building Up on Social Media

The Dogecoin community is also increasingly hyped about the meme coin’s prospects despite the correction in the last 24 hours. Many analysts still expect the Dogecoin price above $1 this year. Such bullish predictions are important in driving FOMO and could help drive the price of Dogecoin higher in the short term.

#DOGECOIN is going to $1+

Like this post if u believe it ! #DOGE $DOGE pic.twitter.com/pfFXCLgiFV

— Doge Lord (@DogeLord) January 7, 2025

Recap

Dogecoin is in a correction today, mainly due to a correction across the financial markets. The correction was triggered by US data that drove assets lower and sent yields soaring. However, Dogecoin bears have failed to push the price to key support, an indicator that the news has been absorbed. Another rally could be underway as the broader market returns to pre-US data levels.