Why Is Dogecoin Going Up? Price Move Explained
At the time of writing, Dogecoin is the 8th-largest cryptocurrency by market capitalization, and it often moves ahead of the broader market. In this article, we’ll explain the key market dynamics behind DOGE’s price, including its correlations, market psychology, and the unique factors that influence it.
Disclaimer: The crypto market is highly volatile and speculative. This analysis is for educational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions.
What is Dogecoin?
Dogecoin ($DOGE) is the biggest memecoin by market capitalization and a fork of Bitcoin. Software engineers Billy Markus and Jackson Palmer created Dogecoin in 2013 as a meme. It famously features the Shiba Inu dog from the popular Doge meme as both its logo and mascot.
Although it was never meant to be taken seriously by the creators, Dogecoin has grown into one of the world’s most popular cryptocurrencies, with a market capitalization of over $21 billion.
Dogecoin is also well known for its celebrity backing — most notably from Elon Musk. For example, Musk’s public support helped push Dogecoin to an all-time high of $0.73 in May 2021, and its price is still sometimes influenced by his tweets, which we’ll discuss in more detail later.
This sensitivity to social media sentiment, however, also makes Dogecoin one of the most volatile cryptocurrencies.
Despite being a fork of Bitcoin, Dogecoin differs from it in a few important ways:
- Unlimited supply: Unlike Bitcoin's capped supply, Dogecoin has no maximum limit and adds 5 billion new coins annually. Over ~168 billion coins are in circulation.
- More practical for online payments: Dogecoin is built on Litecoin's code and uses the Scrypt algorithm, making transactions both fast and cheap.
- Community-driven: Doge is known for having a friendly community. Supporters view it as a people's cryptocurrency — a coin for everyday use rather than just investment speculation.
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Dogecoin price and market context
The table below highlights some of the most important metrics for DOGE:
Dogecoin is known for its very low price per coin (around $0.12 at the time of writing). This is largely due to its uncapped supply: approximately 10,000 new DOGE enter circulation every minute, deluding the supply. This constant inflation naturally puts downward pressure on the price.
In terms of price-per-coin, DOGE has been a “cheap” cryptocurrency historically, but many analysts believe in its future growth. Will Dogecoin reach $1? Some believe it could, while others are even more optimistic, projecting long-term forecasts as high as $10. That said, Dogecoin's trend in 2025 has been downward overall.
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Why is Dogecoin going up?
If you’re wondering why is Dogecoin going up, these are the factors that most commonly drive the price higher:
- Bitcoin is rallying.
- Dogecoin received celebrity endorsement.
- A major institute adopted Dogecoin.
- Investors are speculating on the news.
Bitcoin is rallying
DOGE is one of the major altcoins most closely correlated with Bitcoin — this correlation typically ranges between 0.65 and 0.98. In practical terms, when BTC moves higher, DOGE usually follows.
Here are a few examples of this in action:
- During Bitcoin’s run toward $100,000 in late 2024, Dogecoin surged to $0.48.
- Dogecoin reached an all-time high of $0.73 during Bitcoin’s 2021 bull run.
This happens because when BTC breaks key resistance levels or prints new highs, it signals a return of risk appetite. Both retail and institutional investors then begin rotating into smaller-cap assets, and Dogecoin — thanks to its strong brand recognition and low nominal price — often becomes an appealing target.
That said, DOGE doesn’t move in perfect lockstep with Bitcoin on every timeframe, but over the course of weeks and months, the two assets tend to trend in the same direction.
Dogecoin received celebrity endorsement
Dogecoin’s price is heavily influenced by celebrity endorsements. Elon Musk is DOGE’s most high-profile supporter, but other well-known figures — including Mark Cuban — have also publicly expressed their support for the coin. When this happens, it often triggers sharp price spikes.
For example, Dogecoin has jumped more than 20% in under 24 hours following tweets from Musk or Cuban:
When posts like these go viral on platforms such as X (formerly Twitter) or TikTok, new buyers tend to rush in, driving a surge in interest and pushing the price higher.
If you’re trying to understand what’s behind a DOGE’s rally, a quick check of X or r/dogecoin on Reddit can be revealing.
A major institute adopted Dogecoin
When major companies or financial institutions integrate Dogecoin into their operations, it sends a strong signal of legitimacy and creates interest in the digital currency, attracting fresh capital.
This can be triggered when:
- New major exchanges list DOGE.
- Large funds add DOGE to their treasuries.
- Institutional investors begin accumulating DOGE.
- A Dogecoin ETF is approved.
- Major payment providers add DOGE as a payment option.
- Regulated futures or derivatives products are launched.
- Major retailers begin accepting DOGE for purchases.
- Governments pilot DOGE for official or experimental transactions.
- Financial institutions offer DOGE custody services.
Investors are speculating on the news
Dogecoin’s price often spikes on rumors and announcements, even before anything is officially confirmed or implemented.
Many traders rush in when potentially positive news breaks — such as rumors of upcoming partnerships — hoping to get ahead of the crowd. As a result, DOGE can see sharp, short-term price surges. During speculation, DOGE can sometimes rally 20–30% or more within just a few hours.
Behavior, FOMO and meme dynamics
Unlike traditional assets like BTC and ETH, DOGE's price is more influenced by crowd psychology and social momentum. Despite its real-world utility, DOGE remains a meme coin at heart — and that fundamentally changes how the market reacts to it. There are 3 the key factors that shape market sentiment:
- Illusion of low price
- FOMO
- Meme dynamics
Illusion of low price
One of Dogecoin's most powerful psychological hooks is its low nominal price. At around $0.12 per coin, new investors often feel they can afford to buy more compared to Bitcoin at ~$87,000 or Ethereum at ~$3,000.
This creates what’s called unit bias — the tendency to prefer owning whole units rather than fractions. This is particularly strong during bull markets, when retail investors enter crypto for the first time and gravitate toward assets that seem cheap and have room to grow. This psychological effect often combines with another powerful force: FOMO.
FOMO
FOMO, or Fear of Missing Out, happens when a trader buys an asset simply because they’re afraid of missing future profits. Dogecoin is especially prone to this effect, which can create huge upward price pressure at certain times. Here’s how it usually plays out:
- Bitcoin starts rallying, or a celebrity posts about DOGE
- Price begins climbing, catching attention on social media
- Retail investors rush in, wondering will Dogecoin go up even more?
- A wave of buy orders then drives the price up
Meme dynamics
The meme itself — the Shiba Inu dog — is instantly recognizable and easy to share, which helps news about DOGE spread quickly on social media. Unlike more technical assets like Polkadot (POL) or Cardano (ADA), Dogecoin doesn’t require much explanation, making it more approachable for people who aren’t deep into crypto.
In a market where social media attention and storytelling sometimes matter as much as traditional metrics, broad support and shareability can become a surprisingly powerful driver of price.
When looking at Dogecoin's future, it's important to remember that fear of missing out (FOMO) and how people perceive it play a bigger role in its price than they do for most other coins.
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Conclusion
Understanding these psychological and market dynamics is key to making sense of Dogecoin's price movements — particularly because DOGE is more sensitive to community sentiment than traditional assets like Ethereum. When DOGE is trending upward, it's usually driven by broader bullish market sentiment or high-profile celebrity endorsements, especially on X and Reddit.
Key Takeaways:
- Dogecoin often follows Bitcoin's price movements — it's one of the most Bitcoin-correlated major altcoins.
- Celebrity endorsements on social media, especially from Elon Musk, frequently trigger sharp price spikes.
- Institutional adoption and new exchange listings boost confidence and drive buying pressure.
- FOMO and crowd psychology have a bigger impact on DOGE than on most other cryptocurrencies.sclaimer This article is for informational purposes only. Always read the official prospectus supplement and consult a professional before making investment decisions.
