- Dogecoin price plunged 10%, nearing its lowest point from Q4 last year.
- Memecoins have a unique allure that could help them thrive, even in tough markets.
The recent crypto crash wiped out memecoin gains from early 2025, and Dogecoin [DOGE] was no exception. A massive 70 million DOGE tokens flooded into Binance, triggering a series of red candlesticks.
But here’s a catch: With fear still gripping the market, the ‘high-risk, high-reward’ appeal of memecoins could still draw in investors seeking quick, short-term gains.
Dogecoin is now showing a few signs pointing in that direction.
Watch closely: History might repeat itself
Flashback to the week before Christmas 2024: the crypto market tanked after the Fed ruled out rate cuts, sending Bitcoin [BTC] down 15% in just two weeks.
While altcoins followed suit, Dogecoin’s price took an unexpected turn.
After hitting a yearly high of $0.48 in early December, DOGE tumbled to $0.30 in just two weeks. The DOGE/BTC pair turned red, signaling a shift of capital into other high-cap alts.
However, just as the market crashed, DOGE made a strong rebound against Bitcoin, closing the first week of 2025 near $0.40. It was clear – investors flocked to memecoins, looking for quick, short-term returns.
Source: TradingView
Now, with Bitcoin down 8% after another Fed shock, the market is eyeing a potential dip to $90K. This could give DOGE another shot at attracting capital, just like last time.
But while history might be on its side, it’s not a guarantee. Still, from a psychological angle, Dogecoin could have the edge.
After the market’s heavy losses, the reward of investing in BTC needs to outweigh the risk – and right now, that doesn’t seem to be the case.
So, given the 10% drop in Dogecoin’s price, both historical trends and the market’s current mood suggest it might be the perfect time to start accumulating.
Let’s take a closer look at the on-chain data to see if it supports this theory.
Dogecoin price has strong potential
The $70 million influx of DOGE tokens into Binance aligns with its over 10% drop over the past three days, wiping out the gains made in early 2025.
However, that 18% surge to $0.40 in the first week was driven by a massive 400% spike in whale accumulation.
This is a bullish sign, and with volume indicators showing upside potential and the MACD still bullish, we could see another round of heavy accumulation in the coming days.
On the Futures side, Open Interest (OI) has dipped slightly by 1.29% to $3.43 billion, but long positions still bet on a recovery. Meanwhile, most traders are shorting DOGE – yet another potential bullish signal.
If whales jump back in, which seems highly likely given the current setup, we could be looking at a short squeeze that forces traders to buy back DOGE, potentially pushing Dogecoin’s price even higher.
Read Dogecoin’s [DOGE] Price Prediction 2025–2026
With historical trends, psychological factors, and volume metrics all pointing toward accumulation, it’s not too far-fetched to expect a surge in DOGE in the coming days.
However, for this to materialize, the “risk” factors in the market must remain high, driving investors to seek shelter in memecoins like Dogecoin.
