Dogecoin seems to be recovering from its recent price crash, rallying 4.5% in the last 24 hours, according to CoinGecko’s DOGE data. The popular memecoin is holding steady at the $0.10 price level, amid a larger market turnaround. Despite the rebound, DOGE is still trading in the red zone in the other time frames. DOGE’s price is still down by 11.4% in the last week, 14.7% in the 14-day charts, 28.2% over the last month, and nearly 60% since January 2025. Let’s discuss if Dogecoin’s (DOGE) price rally is a signal that the asset has entered recovery mode, or if it will face further corrections.
Does Dogecoin’s Price Rally Signal A Recovery?
Dogecoin’s (DOGE) rebound comes amid a larger market recovery. Bitcoin (BTC) has reclaimed the $78,000 price level after its recent dip to the $74,000 mark. BTC’s upswing has likely led to a DOGE rally as well. The market turnaround could be due to some pro-crypto remarks made by President Trump. Trump stated that he is a “big crypto person.” The statement may have led to a spike in investor sentiment.
Despite the slight rebound, it is unclear if Dogecoin (DOGE) can continue rallying. The crypto market is still weak and investor sentiment is far from fully recovered. Market participants are continuing their risk-off approach, preferring safe havens instead of risky assets, such as cryptocurrencies. Moreover, Dogecoin (DOGE) is a memecoin with a lot of risks. DOGE’s high-risk factor could prevent it from registering high gains, given the current market environment.
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However, Dogecoin (DOGE) could pick up the pace over the coming months. President Trump has chosen a new Federal Reserve Chair, Kevin Warsh. Many anticipate Warsh to reduce rates first thing after he assumes office. A rate cut could lead to a spike in risky investments. Such as move could lead to Dogecoin (DOGE) seeing a price rally.