Should You Buy the Dip in Dogecoin Right Now?

The inventory market has gotten off to a tough begin in 2025. As of March 4, the S&P 500 and Nasdaq Composite have been down by 1.5% and 5.2%, respectively.

Broadly talking, when the inventory market is performing poorly, buyers might shift their funds into different belongings comparable to commodities or cryptocurrency. Nevertheless, to date this yr the crypto markets have not been too lush, both. The highest two cryptocurrencies, Bitcoin and Ethereum, have dropped by 7% and 36%, respectively, and others have adopted of their wake.

Becoming a member of its cohorts within the crypto sell-off is Dogecoin (CRYPTO: DOGE). After surging by 251% in 2024, its worth has tanked by 36% to date this yr.

However is buying the dip in Dogecoin now a wise thought?

Despite the fact that Dogecoin’s worth rose considerably final yr, the chart beneath ought to assist paint a clearer image as to what actually went on with the cryptocurrency. As you possibly can see, the overwhelming majority of Dogecoin’s good points in 2024 occurred over the last two months of the yr.

Dogecoin’s rising worth motion might be traced to the presidential election. Throughout then-candidate Donald Trump’s marketing campaign, Tesla CEO Elon Musk emerged as a serious surrogate for and big donor to the Republican nominee. One of many elements influencing Musk’s relationship with Trump was their shared view that the federal price range had turn out to be too bloated. Because of this, Musk floated the thought of making a staff targeted on figuring out wasteful spending that could possibly be lower.

The title that he and Trump bestowed on that initiative: the Department of Government Efficiency (DOGE).

Should you take a detailed take a look at its worth chart, you may discover that the worth of Dogecoin really began to fall towards the top of 2024. It has declined by 53% since Dec. 1.

Should you’ve adopted Musk in any respect previous to the election then chances are you’ll know that the entrepreneur has jokingly endorsed Dogecoin on a number of events up to now. It is seemingly that Musk’s comical affinity towards it performed a task when a reputation was picked for the cost-cutting initiative. However on the finish of the day, DOGE is not more than a intelligent acronym. It has no tangible relationship with the cryptocurrency.

Furthermore, Dogecoin stays a meme coin with little to no utility in the actual or digital worlds. In my view, the sell-off that began in December was the primary domino to drop. As buyers started to replicate on the truth that the coin had risen on pure hype unrelated to any precise worthy catalysts, its bubble started to deflate.