Will Dogecoin Price Defy Bearish Fractal Theories & Stage A Rally?

Dogecoin price performance in 2025 has been volatile and raises questions about what the future could hold.

Although the cryptocurrency has made strong early gains in the current bull cycle, it has experienced a notable correction.

Some analysts are divided on whether the meme coin will rebound from its downtrend or carry on in the current bullish trend.

Dogecoin price Declines Over 32% Since January 1

Despite its 2025 bullish start, Dogecoin price has since retraced, losing over 32% so far. Of all the top 15 cryptocurrencies by market capitalization, only Avalanche (AVAX) did worse. Investors, who grew bullish after Dogecoin rallied strongly in 2024, are worried about this downturn.

The price drop comes after a volatile period in which the cryptocurrency gained quickly in November and December, then hit resistance.

Dogecoin price correction follows a trend on the broader market, though the coin’s underperformance as compared to other major assets has led to increased scrutiny.

Particularly, the asset depends heavily on speculation and external influences, like the opinions of celebrities, which makes it very vulnerable to changing market dynamics.

Dogecoin Price to Follow XRP 2021 Price Pattern?

According to market analyst Tony Severino, Dogecoin price current action has many similarities to what XRP experienced in 2021. His analysis of the meme coin’s movements further shows that Dogecoin latest movements look like XRP’s historical price chart fractal pattern, which suggests that Dogecoin has a cyclical top.

In addition, Severino has highlighted that Dogecoin was unable to hold above the 0.786 Fibonacci extension level seen at $0.4198, the same Fibonacci level XRP struggled in early 2021.

After this rejection, Dogecoin had a downfall of over 56% and reached a correction, similar to the case of XRP.

Speculation on this pattern has also caused analysts to believe that Dogecoin could go through a similar trend, causing its upside to be limited in the current market cycle.

Institutional Interest Grows

However, Dogecoin still manages to attract the interest of institutional investors despite their concerns over its recent price movements.

Grayscale and Bitwise have both filed to offer a Dogecoin exchange-traded fund (ETF). This is a great sign in the crypto world that there is growing interest in bringing cryptocurrencies to the traditional investment world.

Grayscale’s proposal has been acknowledged by the U.S. Securities and Exchange commission which means that the proposal is now under review.

The approval of a Dogecoin ETF would likely bring in more institutional investors, which, in turn, could mean higher demand for Dogecoin.

This reflects a wider trend of institutional exposure to cryptocurrencies following the recent approval of spot Bitcoin ETFs.

In the same regard, recent analysis reveals that the TD Sequential has signaled a buy for Dogecoin. It may indicate its price increase.

Moreover, whales have become active, buying 140 million DOGE in the recent past. These large transactions combined with price increase are suggestive of further market positivity. Thus the possibility of more upward movements in Dogecoin’s price.

At the time of writing, Dogecoin price is trading at $0.2075, up 2.63% in the last 24 hours. The price shows a recent upward trend with increased market activity.