Dogecoin (DOGE) experienced an 18% price drop this week, prompting some investors to "buy the dip," acquiring the coin at a reduced price.

Dogecoin price action over the last seven days (Source: CoinMarketCap)

CoinMarketCap data indicates DOGE is currently trading at $0.19, following a decline to Wednesday's low. Dogecoin and Solana were among the top 20 cryptocurrencies by market capitalization to suffer significant losses last week.

A recent transaction involving 11 million DOGE tokens

A wallet recently purchased over 11 million DOGE tokens, representing a value exceeding $2 million. This suggests continued bullish sentiment among investors capitalizing on the price decrease following the meme coin's dip after Trump's return.

Dogecoin's price surged on the U.S. election day and continued its rally after President Trump's victory. Open interest for Dogecoin, representing the total value of active trades speculating on its future price, has significantly decreased to $1.91 billion according to CoinGlass. This is down from a January peak of $5.25 billion.

Current Dogecoin Open Interest: $1.91 Billion

Originating as an internet joke in 2013, Dogecoin has evolved into a significant player in the cryptocurrency meme coin ecosystem.

Buy the Dip: Investors Bet on Dogecoin (DOGE)

Despite a price decline from its peak—a period fueled by endorsements from Elon Musk—Dogecoin maintains a substantial following. Musk's tweets significantly boosted its market capitalization, leading some to consider it a "serious" cryptocurrency. Although its price has since retreated, trading volume remains robust, with over $2.2 billion worth of DOGE traded in the last 24 hours (CoinMarketCap data).

A wallet previously purchasing $2 million worth of DOGE continued accumulating, adding another 1.8 million tokens on Thursday. Another user also increased their holdings by 1.056 million DOGE.

The Trump Administration's Influence on Dogecoin's Price

Dogecoin's prominence resurfaced last year after Musk's campaign trail claim that Trump would allow him to establish a government department named "DOGE" (Department of Government Efficiency). It's noteworthy that Musk, now holding a prominent position in the Trump administration, has expressed support for DOGE. However, he clarified in October that his Dogecoin jokes stem from his enjoyment of cryptocurrency.

Conclusion

With Dogecoin's price near lower support levels, dip-buying investors are accumulating at discounted prices. However, a substantial bullish price movement might require significant positive news. Currently, the DOGE/USDT pair is trading at $0.19.