Why Is Doge Going Up? The Underlying Logic Behind Dogecoin’s 2025 Price Surge

DOGE price trend (as of June 3)

Figure:https://www.gate.com/trade/DOGE_USDT

In early June 2025, DOGE prices hovered between $0.19 and $0.21. As of the market close on June 3, DOGE was reported at $0.1958, down about 7% from this month’s peak of $0.21. Over the past two weeks, DOGE has experienced multiple peaks followed by pullbacks, overall showing a downward oscillation pattern. Compared to the brief rise at the end of May, the current market is more inclined towards consolidation and slight adjustments. In other words, Why Is Doge Going Up? In the recent short term, DOGE has not continued a significant upward trend. The following will analyze the main influencing factors from three aspects.

Why hasn’t DOGE significantly pumped? Three main factors.

1. The overall cryptocurrency market is experiencing fluctuations, with an increased risk-averse atmosphere.

After entering the second quarter of 2025, the cryptocurrency market experienced repeated fluctuations. Although BTC briefly rose above $70,000 at the beginning of the year, tightening regulations on mining electricity in both China and the U.S., along with the unclear progress of U.S. debt ceiling negotiations, have heightened market risk aversion. In mid-May, Bitcoin pulled back from $72,000 to around $65,000, leading to a decline in investor risk appetite, and the outflow of funds also significantly affected the MEME coin sector.

As a typical MEME coin, DOGE is extremely sensitive to overall market sentiment. When mainstream assets like BTC and ETH experience fluctuations and pullbacks, a large amount of speculative capital begins to withdraw from MEME protocols, seeking safer assets for hedging. Therefore, even though DOGE briefly surged to $0.21 at the end of May, the market quickly fell back to around $0.19 as macroeconomic negatives gradually emerged.

2. On-chain positions and profit pressure accumulation

According to on-chain analysis tool IntoTheBlock, as of early June, about 57% of DOGE holding addresses are located in the cost price range of 0.18 to 0.20 USD, indicating that the current price has reached a large amount of profit-taking. The surge at the end of May has allowed some early investors to realize profits. As the DOGE price approaches the psychological level of 0.20 USD, selling pressure begins to be released.

At the same time, the number of active addresses on the chain only showed a slight increase at the end of May, failing to maintain a rapid growth trend. In other words, new market participants did not flood in on a large scale, leading to insufficient buying momentum. Additionally, the net inflow indicators of exchanges also show that the net inflow of DOGE has turned negative in the past seven days, indicating that more users are choosing to transfer their coins back to the exchange in preparation for selling and cashing out. These combined on-chain signals have made it difficult for DOGE to sustain a rise at high levels, resulting in fluctuations and even corrections.

3. The capital absorption effect of mainstream assets is obvious.

Entering June, Bitcoin and Ethereum attracted a large amount of institutional and retail funds. Many investors, after short-term profits, turned their attention to stablecoin staking and Layer 2 yield opportunities to obtain relatively stable annual returns. Especially with U.S. market interest rates in an upward channel, stablecoins (such as USDC, USDT) and DeFi projects offering annual returns of 4%-6% attracted potential speculative funds originally aimed at MEME coins.

Therefore, even if DOGE experiences a brief pump, funds are often quickly diverted to the stable returns of mainstream assets or DeFi projects. Under this “capital absorption effect,” DOGE lacks sustained upward momentum and is more likely to experience fluctuations or slight pullbacks in the short term.

How to judge the next trend of DOGE?

To judge the future trend of DOGE, it is important to pay attention to the following points:

• Macroeconomic and crypto market sentiment: If Bitcoin and Ethereum continue to maintain a pump trend, and macro risk aversion factors ease (such as clearer mining policies and inflows of market capital), the MEME coin sector will have the opportunity to become active again. Conversely, it may continue to be under pressure.
• On-chain position pressure release situation: When DOGE experiences a lower pullback from 0.18 USD, it may trigger a new round of low-level buying. If the cost range decreases, the position pressure may weaken, which will help stabilize the market.
• Community and social media hotspots: The volatility of DOGE is often related to hype on social platforms. For example, if there are new celebrities speaking out, exchange support, or the implementation of payment scenarios, it may lead to a short-term local pump.

Overall, if there is no significant improvement in macro and market sentiment, DOGE will still be dominated by fluctuations; if there are positive catalysts at the same time, it is expected to stabilize above the key support level and attempt a rebound.

Investor operation suggestions

For beginner investors, DOGE is currently in a consolidation period, and caution is advised.

1. Understand your risk tolerance: DOGE is highly volatile, and if you cannot withstand a 10%-20% drawdown risk, it is advisable to reduce your position.
2. Set stop-loss and take-profit: Set the stop-loss at around 0.18 dollars, and exit promptly if the price falls below that; the take-profit can be set in the range of 0.21-0.22 dollars, adjusted according to your own return expectations.
3. Pay attention to on-chain and market indicators: Keep a close watch on changes in on-chain positions and the inflow and outflow of exchanges to grasp the buying and selling rhythm. Observing the trends of BTC and ETH can help assess overall market sentiment.
4. Batch allocation: If you are optimistic about the long-term trend, you can buy in batches when the price pulls back to 0.18-0.19 USD to lower costs; if the market continues to weaken, you should pause new positions and wait for clearer signals.
5. Stay rational and avoid following the trend: DOGE, as a meme coin, has a high proportion of emotional speculation. Do not easily believe market rumors or excessively chase the rise.

Conclusion: Recently, DOGE has not shown significant pump, but instead has exhibited more fluctuations and slight pullbacks. This is mainly constrained by overall market sentiment, on-chain profit-taking pressure, and the capital absorption effect of mainstream assets. Investors should operate cautiously according to their risk preferences, pay attention to key market data and macro trends, and avoid blindly following short-term hotspots.