- Dogecoin price rose 5% on Wednesday to reclaim $0.38 as Donald Trump signed an executive order creating the DOGE Department.
- The new DOGE website featured the Dogecoin logo, sparking intense speculation and excitement among DOGE traders.
- In derivatives markets, bullish DOGE traders mounted $140 million in leveraged long positions betting on further upside.
Dogecoin price rose 5% on Wednesday to reclaim $0.38 as Donald Trump signed the DOGE Department Act into law. Media reports linking the Dogecoin logo to the official DOGE website have sparked bullish speculation that a breakout to $0.50 could be imminent.
Why is the price of Dogecoin increasing?
Dogecoin price sees moderate gains as Trump officially signs DOGE into law.
On Tuesday, President Donald Trump signed an executive order creating the Department of Government Efficiency (DOGE), a groundbreaking initiative tasked with modernizing federal IT systems.
The new department, unofficially dubbed DOGE, will be led by Elon Musk, who will bring his technological expertise to the helm.
In his announcement, Trump emphasized the department’s mission to improve government efficiency, with a focus on overhauling outdated IT infrastructure.
Dogecoin Price Action, January 22, 2025 | Source: TradingView
To add to the intrigue, the new DOGE website prominently displays the Dogecoin logo, sparking widespread speculation among cryptocurrency enthusiasts.
However, neither Elon Musk nor the department’s official X account has confirmed any formal connection between Dogecoin and the initiative.
The price of Dogecoin saw an uptick following the announcement, climbing 5.2% in the 24 hours following the signing of the executive order.
Although the gains reflected the market’s initial enthusiasm, the rally remained tempered as investors waited for more clarity on the potential connection between Dogecoin and the newly created department.
News Selloff Triggers Vivek Ramaswamy Exit Dampening DOGE Price Momentum
Dogecoin’s (DOGE) price performance on the day was notably muted at 5%, compared to other assets like Tornado Cash (TORN) and Monero (XMR), both of which saw double-digit gains.
Several factors contributed to this poor performance. One of the important issues was the announcement of DOGE unity a few months ago, which led many investors to already evaluate the development.
US Federal Government Confirms DOGE, January 21, 2025 | Source: Whitehouse.gov
This early anticipation prevented DOGE from successfully surpassing the crucial $0.40 level, which many traders had been watching closely.
Additionally, some existing holders executed a typical “sell the news” strategy, choosing to take profits rather than hold, further dampening DOGE market momentum.
Furthermore, the market sentiment The DOGE environment was also affected by the recent departure of Vivek Ramaswamy, who resigned from his role in the cryptocurrency space to continue his campaign for governor of Ohio.
The unexpected move introduced an element of controversy that dampened investor enthusiasm.
Despite the challenges, the broader memecoin market continues to demonstrate resilience.
New tokens like TRUMP and MELANIA have generated considerable interest, providing a glimmer of hope for DOGE holders.
If key support levels hold, Dogecoin could potentially extend its gains in the coming days as market participants remain engaged in the memecoin sector.
DOGE Price Forecast: Breakout of $0.40 Could Validate Bullish Dominance
Dogecoin price action hints at potential bullish breakout near $0.40, supported by technical indicators.
The Keltner Channel (KC), visible on the chart, shows a contracting volatility range, with the midline at $0.36226 serving as immediate support. DOGE is currently trading at $0.36102, just below this key level, following a slight daily decline of -2.89%.
Dogecoin Price Forecast | DOGEUSDT
The recent rise to $0.40 (5.18% higher) shows that buying pressure remains strong, as evidenced by a substantial daily volume spike of 5.61 billion DOGE.
This high volume and KC’s breakout higher on Monday suggests bulls are aggressively testing resistance.
A close above $0.36226 could revalidate bullish dominance, targeting $0.43521, the KC upper boundary.
However, downside risks persist. Failure to convincingly reclaim $0.36226 could lead to a retracement towards $0.28931, the lower boundary of the KC.
This would confirm that the bears have regained control in the short term, thus invalidating the bullish scenario.
Traders should watch for a daily close above $0.36226 or below $0.28931 for clearer directional cues.
A decisive move towards $0.40 will likely define DOGE’s next phase of trend.