Dogecoin price analysis: DOGE faces another sell-off as Altcoins weaken against Bitcoin

Dogecoin (DOGE), the largest memecoin by market capitalization, remains highly correlated with the price action of Bitcoin (BTC). Most importantly, the large-cap memecoin, with a fully diluted valuation of around $23.5 billion and an average 24-hour trading volume of about $1 billion, has recorded a fractal pattern similar to the bullish cycles of 2021 and 2017. Therefore, the potential for a significant parabolic rally before the end of 2025 remains clear, especially when driven by the notable rise in gold prices. Altseason being delayed threatens the short-term price outlook of Dogecoin The government's involvement in the cryptocurrency market through complex global regulations has significantly impacted the four-year cryptocurrency cycle. In the 2021 cryptocurrency cycle, most altcoins had price discovery in the second quarter, with large-cap altcoins reaching their respective peaks.

According to cryptocurrency analyst Benjamin Cowen, the altcoin market will continue to bleed into Bitcoin in the near future. The cryptocurrency analyst expects Bitcoin's dominance to reach 66 percent in the coming weeks, which will cause altcoins to drop an additional 10-20 percent.

In the daily timeframe, the price of DOGE has retested the important logarithmic support level established since 2023. Although the price of DOGE has signaled a breakout from the bearish logarithmic trend since the beginning of the year, the MACD and the Relative Strength Index (RSI) have yet to signal the start of bullish sentiment. As a result, the price of DOGE is trending down towards 14 cents once again before soon recovering in a price-determining direction. The bigger picture of DOGE Backed by a strong online community of over 6 million holders on-chain, Dogecoin has grown into a large cryptocurrency asset. Most importantly, the unwavering support from tech billionaire Elon Musk and his family of unicorns has helped attract further support from institutions. Some fund managers have filed applications with the U.S. Securities and Exchange Commission (SEC) to offer spot DOGE ETFs. Meanwhile, the core developers of Dogecoin are looking to expand the network to cover the DeFi ecosystem. Moreover, the DeFi ecosystem has helped leading layer one chains, such as Solana (SOL), maintain competitiveness over the past two years.