Although Dogecoin remains in a downward market trend due to its 47% price drop since 2024 highs, multiple elements could unite to shift this pattern in the near future. On February 19 Dogecoin traded for $0.2537 which lifted its market value past $37 billion.
The DOGE dividend proposal acts as a major possible reason why Dogecoin might come back. Elon Musk’s Department of Government Efficiency helps save public funds that the US government can use to pay $5,000 stimulus checks to its taxpayers.
Scott Bessent from the Treasury Department has revealed DOGE helped the government save more than 50 billion dollars. According to Bloomberg the government would save only $16 billion through DOGE. He predicts the total amount saved would reach $2 trillion eventually.
DOGE Dividend Gains Momentum
People across X started promoting the thought of receiving tax refunds from the government in DOGE dogecoin form. The former President Donald Trump will get involved when Musk discusses this concept.
The government efficiency department managed by Elon Musk operates separately from the cryptocurrency Dogecoin. The project targets governmental spending cuts whereas Dogecoin remains the initial internet meme currency that Musk promoted last year.
When the government sends money to citizens through a stimulus check both cryptocurrencies and technology stocks often benefit through investment because people follow the same pattern as pandemic stimulus checks.
The response of the Federal Reserve depends on how high inflation rates remain due to government checks. The Federal Reserve increased interest rates in 2022 because stimulus money earlier created inflation which hurt Dogecoin and similar cryptocurrencies.
DOGE ETF Approval Nears
The ongoing prospects for a spot Dogecoin ETF approval create new reasons for investors to be optimistic about the crypto’s future. The latest market data suggests that investors now expect an 80% chance for Dogecoin spot ETF approval and react positively toward this development. Approved DOGE ETFs would bring professional traders into this market which would increase investment liquidity and help push prices up.
Market data shows positive technical conditions which may lead to an increase in Dogecoin’s price. The market is passing through the impulse part of the Elliott Wave formation. Two periods of bullish growth for cryptocurrency happened between September 2023 and March 2024 then from March to August 2024.
The longest and final price movement took place between August and November of the same year. Dogecoin returned to test its critical $0.2287 support area during its present fourth wave. The fifth wave will drive Dogecoin to reach $0.7477 that represents a 195% price jump from its present value.
Dogecoin showed intense price fluctuations throughout its past market movements. In the period from 2023 to 2024 Dogecoin grew 750% until it hit its market peaks. Even though the market performance is negative today investors monitor key developments and market signals which signal a possible swift price rebound. Investors follow Dogecoin developments to learn if the dividend plan, ETF proposal or general market conditions will start another price increase.
