Dogecoin (DOGE) faced a tough day on Wednesday, dropping 9% as risk assets took a hit following the US Federal Reserve’s latest policy announcement. While the Fed reduced interest rates by 25 basis points, it tempered expectations for aggressive rate cuts in 2025, triggering a broad market sell-off.
Despite the decline, Dogecoin remains above critical support levels, including its 50-day moving average (50DMA) and the $0.33-$0.35 range lows. This zone has served as a key price level since mid-2021. However, a breach of this range could send DOGE sliding towards early 2024 highs in the $0.23 area.
While the short-term outlook is uncertain, Dogecoin’s long-term prospects remain strong. Here’s why the meme coin is poised for growth in 2025.
Bullish Case for Dogecoin in 2025
The Trump administration’s return and a reshaped US Congress are expected to create a favorable environment for the cryptocurrency industry. Speculation about establishing strategic Bitcoin reserves in the US and other major nations further adds to this optimistic outlook. As the top meme coin, Dogecoin is well-positioned to benefit from these developments.
Elon Musk’s Influence and the D.O.G.E. Department
Dogecoin’s ties to Elon Musk remain a significant advantage. The new Department of Government Efficiency (D.O.G.E.), established under Musk’s leadership, reinforces the meme coin’s cultural relevance. Musk’s long-standing support ensures that Dogecoin will remain at the forefront of the meme coin market.
If the broader crypto market flourishes under favorable policies, Dogecoin could be on track to reach $1 in 2025.
