After being trapped in a falling trend since early December 2024, Dogecoin (DOGE) price has approached a possible bottom. In preparation for a much anticipated parabolic rally to price discovery, leading dog-themed memecoin, which is backed by tech billionaire Elon Musk, has rebounded from a crucial support level of around $0.143 in the past two days.
In the past 24 hours, DOGE price rallied about 8 percent to trade around $0.1722 on Wednesday, March 12, during the early New York session. As a result, the large-cap altcoin, with a fully diluted valuation of about $25 billion and a 24-hour average trading volume of around $2.1 billion, could be following Bitcoin (BTC) price in an anticipated bullish recovery ahead.
Dogecoin Price Insights
From a technical analysis standpoint, Dogecoin price recently rebounded from a crucial support level of around $0.14, which coincided with the weekly 0.786 Fibonacci Retracement.
The top-tier memecoin has been forming higher highs and higher lows in the past year, thus signaling a potential bottom for the ongoing market-wide correction.
As a result, a consistent close above the support/resistance level of around 20 cents will yield a major rally towards the all-time high. However, a consistent close below $0.14 in the coming weeks will spell further downside risks.
Key Factors Driving DOGE Market Outlook
The Dogecoin network, which is secured through the legendary proof-of-work (PoW) consensus method, has attracted more than 6.1 million on-chain holders as of this writing. The unwavering support from Musk and his family of unicorns has helped increase the mainstream adoption of Dogecoin as a means of payment by global merchants.
The rising demand for memecoins has attracted institutional investors into Dogecoin as shown by the filing of spot DOGE ETFs in the U.S. by Grayscale and Bitwise. Meanwhile, on-chain data from IntoTheBlock shows that the number of large transaction volumes on the Dogecoin network has experienced a sharp uptick in the last few months.
According to on-chain data from Santiment, Dogecoin whales purchased more than 1.4 billion coins in the last two days to currently hold about 24.6 billion coins.
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