Trump DOGE division shuts down! Is there a chance for Dogecoin price prediction to soar 224% against the trend?

The US government has officially shut down the Department of Government Efficiency (D.O.G.E), following reports of disagreements between President Trump and Elon Musk. While this should be bearish news for Dogecoin, the Dogecoin (DOGE) price prediction has surprisingly turned bullish. Not only did Dogecoin avoid a drop, but it also rose 1.1% in the past 24 hours, with trading volume surging 20%. If the bullish trend continues, DOGE could hit $0.47, representing a 224% increase.

Trump’s DOGE Department Shutdown: Bearish News Fully Priced In

The US Office of Personnel Management confirmed the shutdown of the Department of Government Efficiency, which should have been a major bearish event for Dogecoin. The agency’s association with Dogecoin had previously driven up the token’s price, especially after Elon Musk was appointed to lead the initiative—a move widely interpreted as an endorsement of this meme coin. Dogecoin and the department share the same acronym, a coincidence that the crypto community saw as Musk’s implicit backing of DOGE.

Despite Dogecoin Bank actively releasing layoff plans as recently as yesterday, Cooper confirmed the department’s closure in an interview today. This news should have been disastrous for investors linking Dogecoin to political narratives. However, the market reacted in the opposite way: DOGE’s price rose after the announcement, once again proving that meme coins don’t follow traditional market logic.

Now, with the news confirmed, Dogecoin has moved higher, and the charts show signs of a potential shift. This counterintuitive price action is not uncommon in the crypto market and is often referred to as a “bearish news fully priced in” phenomenon. When all the bad news has been digested and the price doesn’t fall further, it often signals a bottom and an impending rebound. DOGE price prediction must take this market psychology into account.

From another perspective, the shutdown of the Department of Government Efficiency might actually free Dogecoin. When a cryptocurrency relies too heavily on political narratives, policy changes introduce massive uncertainty. Now that this connection has been severed, Dogecoin can return to its roots as a community-driven meme coin. Musk’s personal support for Dogecoin hasn’t changed with the closure, and his influence may outweigh any government agency.

$0.13 Key Support Holds, Bottom Likely In

(Source: Trading View)

Despite the announcement, Dogecoin rose 1.1% in the past 24 hours, with trading volume surging 20%. The market appears unfazed by the news and is trying to recover from major setbacks of recent weeks. The surge in trading volume is a key signal, showing that participants are actively reassessing DOGE’s value rather than passively accepting the collapse of the political narrative.

A few days ago, Dogecoin broke below a long-term trendline support, raising traders’ concerns. The price quickly dropped from $0.15 to $0.13, triggering bearish sentiment. Such a break is typically considered a major technical bearish signal, meaning the bulls’ defenses have been breached and further declines could follow. However, the $0.13 level showed remarkable resilience.

For now, $0.13 appears to be acting as support—the same level that triggered a strong rebound on April 7. The recurrence of this historical support is significant in technical analysis, as it reflects strong buying interest in this price range. At that time, DOGE doubled in a month, climbing from this base to $0.26. This “price memory” effect makes $0.13 a powerful psychological support.

Looking at trading volume distribution, there is a large historical volume near $0.13, indicating that many investors have their cost basis in this area. These holders are highly motivated to defend or add to positions when the price returns to their cost, forming strong buying support. In addition, technical indicators show a clear uptick in buying after DOGE hit $0.13, with RSI rebounding from oversold and indicating selling pressure has been exhausted.

Three Technical Implications of the $0.13 Support Level

Historical Bottom Revisited: Rebound starting point on April 7, strong market memory

Cost Concentration Zone: Large volume of positions at this level, forming a natural defense

Oversold Rebound Signal: RSI rebounding from oversold, technical buyers stepping in

History Repeats: Potential Double to $0.26

If this pattern repeats, buyers at current levels could see 100% returns. DOGE price prediction shows that Dogecoin could first retest its recent high at $0.29, and if momentum continues, the rally could extend to the November 2024 peak at $0.47—an increase of 224%.

The previous rally from $0.13 to $0.26 provides key reference for current DOGE price prediction. That rebound was not instant but followed weeks of bottoming before an explosive move. Key catalysts included improved community sentiment, Musk’s tweets, and a broader crypto market recovery. Today’s environment is similar: political narrative headwinds have been digested, and the community is refocusing on DOGE’s core value.

$0.29 is DOGE’s recent high and the first major resistance. This price has been tested several times in recent months but not broken, accumulating trapped sellers. As DOGE approaches $0.29, these holders may sell to break even, creating selling pressure. However, if trading volumes remain high and buying can absorb this supply, breaking through $0.29 opens the path to higher targets.

$0.47 is the November 2024 peak, representing DOGE’s valuation during the height of political narrative hype. From the current price of about $0.145 (assuming the $0.13–$0.15 range), reaching $0.47 means a 224% gain. While aggressive, this target is not impossible. As a meme coin, DOGE’s price swings often exceed rational expectations, and bursts of community sentiment and celebrity influence can trigger rapid surges.

With early signs of meme coin revival, some traders are even watching for the early phase of the cycle. Meme coin bull runs tend to rotate: after Bitcoin and major coins stabilize, capital seeks higher returns in meme coins. With Bitcoin consolidating above $100,000, if this level holds, it could create a favorable environment for a meme coin rebound.

20% Volume Surge Shows Buying Confidence Returning

A 20% jump in trading volume is significant for DOGE price prediction. When volume increases after bad news and the price rises, this combination often marks a turning point in market sentiment. The rise in volume means more participants are actively trading DOGE, rather than passively holding or panic selling.

From a capital flow perspective, this 20% jump in volume is mainly from buying, not selling—otherwise, the price wouldn’t rise. This shows new capital entering the DOGE market, possibly from dip-buying speculators or long-term investors optimistic about the future. Either way, this inflow gives upward momentum to the price.

Historically, DOGE’s major rallies have come with explosive volume increases. When volume keeps rising and price breaks key resistance, it attracts more momentum buyers, creating a self-reinforcing uptrend. The current 20% increase may be just the beginning of such a cycle.