TLDR:
- Trump appointed Elon Musk to lead the Department of Government Efficiency (DOGE) on January 20, 2025, leading to 160,000 new Dogecoin wallet users within 30 days
- Dogecoin’s price currently sits at $0.24, showing mixed performance despite recent ETF filing acknowledgments from SEC for Grayscale and Bitwise
- Technical analysts draw parallels between current market patterns and the 2017 bull cycle, suggesting potential movement toward $0.28
- The memecoin sector faced negative sentiment due to controversy surrounding Argentina President Milei’s connection to the LIBRA token scandal
- Total Dogecoin wallets increased from 7.02 million to 7.18 million after Musk’s appointment
Dogecoin has experienced a surge in new users following Elon Musk’s appointment to lead the Department of Government Efficiency (DOGE) by President Donald Trump on January 20, 2025.
Data from Santiment reveals that 160,000 new wallet addresses joined the Dogecoin network within 30 days of the announcement.
The total number of unique wallets on the Dogecoin blockchain has grown from 7.02 million to 7.18 million since Musk’s appointment. This increase in user adoption comes as the cryptocurrency trades at $0.24, showing mixed performance amid various market developments.
DOGE Price
Despite these developments, Dogecoin’s price action has remained relatively subdued compared to other cryptocurrencies with pending ETF applications. Litecoin reached a 30-day high of $140, while XRP claimed the $2.70 level. Dogecoin’s momentum has faced headwinds from broader market concerns.
Technical analysis from crypto expert DOGECAPITAL suggests similarities between current market patterns and the 2017 bull cycle. The analyst points to potential movement toward the $0.28 range, marking what they consider the next major milestone for the cryptocurrency.
$DOGE Chart Update: With recent price action, #DOGECOIN has maintained its previous pattern movements. In this chart, I’ve made a slight adjustment to the curved red line, as mentioned earlier, to more accurately fit the price action.
What I expect next is for Dogecoin to… https://t.co/oo3pouaHxP pic.twitter.com/DMs0tfHh72
— ÐOGECAPITAL (@DimaPotts36) February 19, 2025
Price indicators show mixed signals. The Directional Movement Index (DMI) indicates bearish control with the negative directional indicator (-DI) at 33.58 surpassing the positive directional indicator (+DI) at 13.50. The Average Directional Index (ADX) at 25.07 suggests the current trend maintains strength.
The cryptocurrency’s price movement remains confined within a tightening range, as indicated by the Bollinger Bands. The upper band sits at $0.27840, while the lower support rests at $0.24. The Volume Weighted Average Price (VWAP) at $0.25181 suggests moderate buying interest.
Market observers note that Dogecoin needs to break past the upper Bollinger Band at $0.28 to continue its upward movement. Support levels show that if the price falls below $0.24, it could decline toward $0.22.
Recent price action saw DOGE climb 5.2% over three days, though the gains from ETF-related excitement remained limited at 5%. The cryptocurrency has struggled to push beyond resistance at $0.26, falling back to $0.24 at the time of writing.
Trader Tardigrade, a crypto market analyst, describes the current market phase as the “Boring Phase,” drawing comparisons between the 2017 and 2025 cycles. This period typically involves heavy accumulation by investors before potential future price movements.
#Dogecoin has entered the “Boring Phase” ????
Expect tight consolidation at the current level over the next few weeks before the massive $Doge rally ???? pic.twitter.com/bnnDdKOqcP
— Trader Tardigrade (@TATrader_Alan) February 20, 2025
The expanding user base has potential implications for the network’s stability. More wallets enhance network decentralization, potentially making the ecosystem more resistant to manipulation and extreme price swings.
The combination of institutional interest through ETF filings and the growing user base presents a complex market picture for Dogecoin. Trading data shows the cryptocurrency needs stronger momentum to break through the $0.30 resistance level.
Technical indicators suggest continued price consolidation in the near term, with the Bollinger Bands showing contracting volatility. Analysts expect tight consolidation at current price levels over the coming weeks.
Oliver Dale
Editor-in-Chief of CoinCentral and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact Oliver@coincentral.com
