History Suggests That Dogecoin Could Be Set Up for a Big Move. Is Now the Time to Buy?

One of the more interesting case studies in the cryptocurrency realm over the last year is that of Dogecoin (CRYPTO: DOGE). In 2024, the price of Dogecoin surged by 251% -- handily outperforming the likes of the S&P 500, Nasdaq Composite, and crypto's most popular name, Bitcoin.

Unfortunately, 2025 hasn't been as good for Dogecoin as last year.

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As of April 21, the price of Dogecoin has cratered by 50% so far this year. Per historical trends, Dogecoin's current price action suggests a big move could be coming soon.

Is now an opportunity to buy the dip in Dogecoin? Let's find out.

Looking at Dogecoin's historical patterns

The chart below illustrates the price of Dogecoin over the last five years. Given the trends below, it becomes clear that Dogecoin is a volatile asset. While there have been quite a few spikes in its price, I also see another detail.

Dogecoin Price data by YCharts

Namely, Dogecoin's price tends to bottom around $0.10. Generally, after that, it begins to rebound. But Dogecoin's rebounds are always fleeting.

So history suggests a price increase could come soon with the current level of around $0.15. But I think it might not play out that way from here.

Why I think this time could be different

I've been covering Dogecoin closely over the last several months. The biggest takeaway I've gathered from the crypto's price volatility is that it became correlated to the outcome of the presidential election. Back in November, the price of Dogecoin went parabolic following Donald Trump's victory. But why?

Well, he created a program called the Department of Government Efficiency (DOGE), which is meant to cut spending in the federal budget. Tesla CEO Elon Musk leads this effort. For years, Musk has appeared to like to Dogecoin -- often posting memes about it on social media, which some novice investors likely viewed as an endorsement from the billionaire entrepreneur.

Given the creation of DOGE and Musk's involvement with the program, some investors may have thought that Dogecoin would somehow be a beneficiary. While I personally think that idea was far-fetched to begin with, Musk himself has confirmed that the U.S. government has "no plans" to use Dogecoin in any capacity that he is aware of.

Dogecoin's price has been sliding for some time now. And given Musk's recent commentary, my thinking is that the sell-off will continue and that Dogecoin will continue to slide.

Image source: Getty Images.

Dogecoin is entertaining, but should be avoided as a serious investment

At the end of the day, Dogecoin is an entertaining asset, but it's a meme coin with no real utility, not something serious investors should be considering. In my eyes, any money that has ever been made in Dogecoin comes down to two factors: timing and luck.

Even if the price of Dogecoin does begin to bounce higher, the price rise itself will likely be fleeting. I don't think Dogecoin should earn a position in the portfolio of a long-term investor given its speculative nature and unpredictability.

Should you invest $1,000 in Dogecoin right now?

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Adam Spatacco has positions in Tesla. The Motley Fool has positions in and recommends Bitcoin and Tesla. The Motley Fool has a disclosure policy.