Why is Dogecoin (DOGE) price up today?

Dogecoin (DOGE) price has jumped by approximately 7% in the last 24 hours to reach $0.181 on March 25. The memecoin was trading for $0.189 at its intraday top, its highest level in almost two weeks.

Dogecoin, Cryptocurrencies, Markets, Elon Musk, Tech Analysis, Market Analysis, Altcoin Watch, Memecoin — *DOGE/USD four-hour price chart. Source: TradingView*

Key factors driving the DOGE prices higher today include:

A DOGE reserve initiative undertaken by the Dogecoin Foundation
Risk appetitive recovery on easing trade war fears.
A classic flag pattern on the DOGE price chart.

Dogecoin Foundation buys 10 million DOGE

DOGE’s ongoing price rise coincides with the launch of the Official Dogecoin Reserve, a move designed to stabilize the memecoin and boost institutional confidence.

Key points:

On March 24, the Dogecoin Foundation revealed the creation of the “Official Dogecoin Reserve” aimed at supporting DOGE’s long-term price stability and credibility.
As part of the initiative, the foundation has purchased 10 million DOGE worth around $1.80 million.
The Foundation’s strategic DOGE purchase occurs at a time when traders are closely watching signs of institutional entry into the memecoin sector, particularly with the potential launch of spot Dogecoin ETFs in the US.

As of March 25, crypto betting platform Polymarket was showing 72% odds in favor of a Dogecoin ETF launch by the year’s end, up from 27% on Jan. 1.

Altcoins are outperforming Bitcoin amid risk rally

Dogecoin’s gains today appear alongside a broader altcoin market rally led by easing trade war tensions.

Key takeaways:

Meanwhile, Bitcoin’s market cap has declined 0.61% in the same period.
It shows that traders are rotating capital from Bitcoin into altcoins like Dogecoin.
The divergence appears amid signs of easing trade war tensions.
On March 24, US President Donald Trump signaled twice that trading partners would receive possible exemptions or reductions.
Investors embraced higher-risk assets amid improving macro sentiment, favoring riskier altcoins over safer bets like Bitcoin.
Memecoins often attract retail-driven hype during altcoin rallies, as shown below via the performance of top-ranking joke cryptocurrencies on a 24-hour adjusted timeframe.

Relatively higher speculation is also visible in the Dogecoin Futures market, wherein DOGE open interest (OI) and funding rates are climbing.

What to know:

As of March 25, DOGE’s OI in the futures market was around $1.80 billion, up from the March 11 low of $1.33 billion, the lowest in four months at the time.

DOGE’s weekly funding rates at the same time have climbed to 0.157% from negative levels on March 21.
Rising DOGE open interest and positive funding rates indicate growing demand for leveraged long positions, reflecting bullish sentiment.

Dogecoin is bouncing with a bear flag channel

Dogecoin’s price gains today appear to be a part of its prevailing bear flag pattern.

Key takeaways:

A bear flag pattern forms when the price consolidates higher inside a rising parallel channel after undergoing strong declines.
As a technical rule, the pattern resolves when the price breaks below the lower trendline and falls by as much as the previous downtrend’s height.
As of March 25, Dogecoin was consolidating inside the flag channel, with its recent bounce occurring after testing the lowest trendline as support.

However, its overall bias remains skewed to the downside, providing it breaks below the flag’s lower trendline next.
Should it happen, DOGE price can decline toward the technical downside target at around $0.117—down approximately 35% from the current price levels—by April.
Conversely, a breakout above the flag’s upper trendline will likely invalidate the bearish setup, sending DOGE’s price toward the 50-day EMA (the red wave near $0.214) instead.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.