It seems like investors are on cloud nine, which, according to history, has been good for Dogecoin.
It’s fun times for investors at the moment. Not only is the broader U.S. stock market at all-time highs, but Bitcoin, the flagship cryptocurrency, is also soaring to new heights.
The positive sentiment is an excellent sign for Dogecoin (DOGE 6.41%), which at roughly $0.20, sits well below the price at which coin changed hands to begin 2025.
Dogecoin is one of the most valuable and widely known meme coins. Investor sentiment is soaring as the U.S. House of Representatives begins to discuss multiple cryptocurrency bills, with House leadership going so far as to call the week of July 14 “Crypto Week.”
Can Dogecoin revisit its highs, and should you buy the popular coin while it’s still less than $0.25? Here is what you need to know.
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Dogecoin thrives on sentiment momentum
Although its developers created Dogecoin as a light-hearted joke to foster community among its supporters, it’s a fully functioning cryptocurrency that operates on a blockchain. Dogecoin has a market value of about $31 billion today, despite trading well below its all-time highs. At its current price, Dogecoin is still larger than more than 200 companies in the S&P 500, the world’s most widely followed stock market index. So, to say Dogecoin has been successful probably is an understatement.
But as a meme coin, it’s not intended for widespread use in real-world applications. Since it rose to popularity, Dogecoin has reached new highs during periods of extreme optimism in the cryptocurrency market.
Dogecoin Price data by YCharts.
It reached its two highest prices during the zero-percent interest rate market bubble in 2020-2021 and following Donald Trump’s victory in the 2024 U.S. presidential election. Trump took a pro-cryptocurrency stance during his campaign, so his victory boosted investor sentiment.
If Crypto Week yields some noteworthy developments for cryptocurrencies as a whole, it could propel sentiment into top gear once again, which would likely send Dogecoin’s price higher.
Hitting high prices and sustaining them are two separate issues
As you can see in the price history, Dogecoin’s price is quite volatile, and its highs haven’t historically lasted long. Part of the reason for that is that there isn’t much to sustain those high prices. Cryptocurrencies depend on market forces (supply and demand). Since people primarily use Dogecoin for some niche applications and online tipping, its price largely depends on the enthusiasm of its investor base. Without something to get investors excited, there isn’t much reason for Dogecoin’s price to increase.
Additionally, Dogecoin’s supply is constantly expanding; 10,000 new coins are added to circulation every minute, and the supply has no maximum limit. Therefore, there is a steady downward pressure on its market price over time.
That’s why if Dogecoin’s price does jump higher, you probably shouldn’t count on it staying up.
Should you buy Dogecoin while its price is less than $0.25?
Look, there is nothing wrong with putting some money in Dogecoin, as long as it’s done as fun and not something you are counting on as a serious investment strategy. Just like going to the casino, there is nothing wrong with having some fun with throwaway money. The problems arise when you start betting next month’s rent on a game.
Don’t let some good luck and price appreciation make you forget that Dogecoin is a meme coin for a reason. Invest in Dogecoin and other meme coins responsibly, so something intended as a light-hearted joke doesn’t become a profound tragedy for your portfolio.
Dogecoin’s price could surge again under certain circumstances. If it does, enjoy it, and smile as you ring the cash register with your profits.
Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
