- There’s a mixture of optimism and pessimism on the funding potential of Dogecoin, given its recent dips and investors reallocating their capital into the token.
The market-wide cryptocurrency liquidations influenced by Bitcoin (BTC) temporarily sinking below $100K across the week mainly supplanted the Dogecoin (DOGE) community’s optimism. The event led the OG meme coin to fluctuate from around $0.18 to $0.15 during the mayhem.
Amid new historic peaks in Bitcoin and other large-cap altcoins this year, DOGE’s value has remained a far cry from its all-time high of $0.73 four years ago. Hence, this prompted the tightly knit community to question whether Dogecoin is still a good investment on the way to 2026.
Here are the factors to watch out for, which could prod the bulls in DOGE:
Investment in Dogecoin Recovers
According to The Motley Fool, investors are buying back Dogecoin after what they considered a price dip amid the persistent sell pressure. The private financial and investing advice company noted that macroeconomic and geopolitical developments will continue to play a significant part in DOGE’s trajectory.
The US Federal Reserve’s decisive move on interest rates in December will determine the next crypto rally. The government’s economic reports, once it lifts the ongoing shutdown, would also be a key catalyst for DOGE if sentiment on risk assets gains traction.
Gradual Move From Meme to Utility Token
Dogecoin is still driven by its OG memecoin status. However, the Dogecoin Foundation continues its efforts to advance several developments to highlight and expand the token’s utility, emphasizing that there’s more to it than hype or social media noise from its active community.
Dogecoin’s primary use case beyond speculative investing revolves around payments. Its biggest adopter is Tesla, but its use is limited to specific merchandise in the brand’s shop. Tesla CEO Elon Musk claimed their company would accept the token for electric vehicle (EV) purchases “at some point.” The automaker and its CEO have yet to follow up on this promise, though.
Additionally, the crypto community floated rumors about Dogecoin’s integration on XPayments, the X social media platform’s payments feature. But then again, X has already deleted the official account of XPayments, seemingly leaving the project in development hell.
Nonetheless, some are clinging to the hope that these will eventually materialize. Meanwhile, the Dogecoin Foundation continues to explore the potential integration of a Layer-2 (L2) chain into the DOGE ecosystem while maintaining vital support for the GigaWallet, Libdogecoin, and RadioDoge initiatives.
The Bitcoin Effect
Despite its recent dips, analysts like Fundstrat’s Tom Lee and 10x Research’s Markus Thielen are not ruling out a last-minute Bitcoin rally before 2025 ends. Lee even claimed that BTC could top $150,000 to $200,000 before 2026.
Dogecoin will likely benefit from Bitcoin’s rally. Their 0.76 correlation over the last three months, based on Macroaxis data, indicates that DOGE’s direction aligns with BTC’s, but it also shares BTC’s risks.
Although the source suggested that BTC usually outperforms DOGE, a big leap to $150,000 or $200,000 for the former would spark a considerable rally for the latter.
Elon Musk Factor
Last but not least is the Musk factor. There’s this previous argument that the crypto community’s anointed “Dogefather” no longer exhibits the same level of impact on DOGE. However, one should not completely overlook his influence.
Musk’s previous interviews and posts have historically catalyzed double-digit rallies for DOGE. The build-up to his SNL skit, in particular, led to the token’s all-time high four years ago, and his other mentions caused it to fluctuate significantly.
Chances are, the billionaire’s next Dogecoin narrative will most probably yield the same positive effect.
Disclaimer: The facts presented in this article are only for informational purposes. They do not serve as financial advice or product recommendations from the author or the Blockzeit team.
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