Dogecoin (DOGE) Price Shows Signs of Rebound After December Slump

After a downward trend since early December 2024, Dogecoin (DOGE) has shown signs of reaching a potential bottom. Rebounding from a key support level around $0.143 over the past two days, the memecoin, backed by Elon Musk, is poised for a possible parabolic rally.

In the 24 hours leading up to Wednesday, March 12th, DOGE's price increased by approximately 8%, trading around $0.1722 during the early New York session. This large-cap altcoin, with a fully diluted valuation of roughly $25 billion and a 24-hour average trading volume of around $2.1 billion, may be mirroring Bitcoin's (BTC) anticipated bullish recovery.

Dogecoin Price Analysis

Technically, Dogecoin's recent rebound from the $0.14 support level, coinciding with the weekly 0.786 Fibonacci Retracement, is significant.

Over the past year, the memecoin has demonstrated higher highs and higher lows, suggesting a potential bottom to the current market correction. Sustained trading above the $0.20 support/resistance level could trigger a significant rally towards its all-time high. Conversely, consistent closing prices below $0.14 in the coming weeks could indicate further downside.

Factors Influencing DOGE's Market Outlook

Dogecoin's proof-of-work (PoW) secured network boasts over 6.1 million on-chain holders. Elon Musk's continued support has contributed to increased mainstream adoption by global merchants.

Growing memecoin demand has attracted institutional interest, evidenced by Grayscale and Bitwise's filings for spot DOGE ETFs in the U.S. Furthermore, IntoTheBlock's on-chain data reveals a recent surge in large transaction volumes on the Dogecoin network.

Santiment's on-chain data indicates that Dogecoin whales have acquired over 1.4 billion coins in the last two days, bringing their total holdings to approximately 24.6 billion coins.