Dogecoin price remains in a bear market after falling by 47% from its highest level in 2024, but a few catalysts may push it higher soon.
Dogecoin (DOGE), the largest meme coin in crypto, was trading at $0.2537 on February 19, bringing its market cap to over $37 billion.
One key catalyst that may push Dogecoin higher is the proposed DOGE dividend. The proposal suggests a $5,000 stimulus check for American taxpayers, with its funding coming from the savings secured by Elon Musk’s Department of Government Efficiency.
According to Treasury Secretary Scott Bessent, DOGE has already saved the government over $50 billion. Bloomberg, however, has refuted this figure, estimating the savings at approximately $16 billion. Musk has suggested that total savings could exceed $2 trillion over time.
An X user suggested that the government announce a DOGE dividend—a tax refund of $5,000 sent to all taxpayers. Musk responded, indicating that he would discuss the idea with Donald Trump.
It should be reminded that Elon Musk’s Department of Government Efficiency is not related to Dogecoin, despite identical names. His DOGE project aims to eliminate government waste, while Dogecoin is the oldest meme coin in crypto and Musk was one of the biggest boosters of DOGE in 2020 and 2021
In theory, a stimulus check would be beneficial for cryptocurrencies and other risky assets like technology stocks, as some of the distributed funds would likely flow into these markets, similar to what occurred during the pandemic.
However, such stimulus checks could also contribute to higher inflation, potentially prompting the Federal Reserve to maintain a hawkish stance. Dogecoin and most altcoins crashed in 2022 when the Fed raised interest rates to address inflation fueled by previous stimulus measures.
Another potential catalyst for Dogecoin’s price is the increasing likelihood of a spot DOGE ETF approval. Polymarket data shows that the odd has jumped to 80%.
Dogecoin price forecast
DOGE has another technical catalyst, as it is currently in the impulse phase of the Elliott Wave formation. The first bullish phase occurred between September 2023 and March 2024, followed by a second phase between March and August.
The third phase, typically the longest, took place between August and November. Dogecoin is now in the fourth wave and has already retested the key support at $0.2287. It will likely enter the fifth wave, potentially pushing its price to a record high of $0.7477, about 195% above its current level.
Dogecoin is no stranger to large price swings, having surged 750% from its lowest point in 2023 to its 2024 highs.
