After what felt like being stuck in a downtrend since the beginning of December 2024, the price of Dogecoin (DOGE) might be hinting at a bottom. As excitement builds for a potential surge to new price heights, this leading dog-themed memecoin, famously backed by tech mogul Elon Musk, has shown signs of life. Over the past couple of days, it’s bounced back from a key support level around $0.143.

In the last 24 hours, DOGE’s price jumped about 8 percent, trading around $0.1722 in the early hours of Wednesday, March 12th, in New York. This could mean that Dogecoin, a major altcoin with a fully diluted valuation of roughly $25 billion and a daily trading volume averaging around $2.1 billion, is following in Bitcoin’s footsteps and gearing up for a bullish recovery.

Dogecoin Price Insights 

From a technical analysis perspective, Dogecoin’s recent rebound from a critical support level near $0.14 is noteworthy. Interestingly, this level aligns with the weekly 0.786 Fibonacci Retracement line.

What’s interesting is that this leading memecoin has been consistently forming higher highs and higher lows over the past year. This pattern could be a signal that Dogecoin is establishing a bottom amidst the broader market correction.

Looking ahead, if Dogecoin can maintain a closing price above the 20-cent support/resistance level, we might witness a significant rally targeting its all-time high. However, a sustained close below $0.14 in the coming weeks could point towards further downside risks.

Key Factors Driving DOGE Market Outlook

The Dogecoin network, known for its robust proof-of-work (PoW) security, has now drawn in over 6.1 million on-chain holders and counting. The unwavering support from Elon Musk and his related companies has been a major factor in boosting Dogecoin’s mainstream appeal as a payment option for businesses worldwide.

The increasing popularity of memecoins is also attracting institutional investors to Dogecoin. We’re seeing evidence of this with recent filings for spot DOGE ETFs in the U.S. by major players like Grayscale and Bitwise. Furthermore, data from IntoTheBlock reveals a noticeable jump in large transaction volumes on the Dogecoin network in recent months.

Adding to the positive signs, on-chain data from Santiment indicates that Dogecoin whales have been actively buying, scooping up over 1.4 billion DOGE in just the last two days. Their total holdings now stand at approximately 24.6 billion coins.