Dogecoin has experienced a surge in new users following Elon Musk’s appointment to lead the Department of Government Efficiency (DOGE) by President Donald Trump on January 20, 2025.

Data from Santiment reveals that 160,000 new wallet addresses joined the Dogecoin network within 30 days of the announcement.

The total number of unique wallets on the Dogecoin blockchain has grown from 7.02 million to 7.18 million since Musk’s appointment. This increase in user adoption comes as the cryptocurrency trades at $0.24, showing mixed performance amid various market developments.

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Dogecoin
DOGE Price

Despite these developments, Dogecoin’s price action has remained relatively subdued compared to other cryptocurrencies with pending ETF applications. Litecoin reached a 30-day high of $140, while XRP claimed the $2.70 level. Dogecoin’s momentum has faced headwinds from broader market concerns.

Technical analysis from crypto expert DOGECAPITAL suggests similarities between current market patterns and the 2017 bull cycle. The analyst points to potential movement toward the $0.28 range, marking what they consider the next major milestone for the cryptocurrency.

Price indicators show mixed signals. The Directional Movement Index (DMI) indicates bearish control with the negative directional indicator (-DI) at 33.58 surpassing the positive directional indicator (+DI) at 13.50. The Average Directional Index (ADX) at 25.07 suggests the current trend maintains strength.

The cryptocurrency’s price movement remains confined within a tightening range, as indicated by the Bollinger Bands. The upper band sits at $0.27840, while the lower support rests at $0.24. The Volume Weighted Average Price (VWAP) at $0.25181 suggests moderate buying interest.

Market observers note that Dogecoin needs to break past the upper Bollinger Band at $0.28 to continue its upward movement. Support levels show that if the price falls below $0.24, it could decline toward $0.22.

Recent price action saw DOGE climb 5.2% over three days, though the gains from ETF-related excitement remained limited at 5%. The cryptocurrency has struggled to push beyond resistance at $0.26, falling back to $0.24 at the time of writing.

Trader Tardigrade, a crypto market analyst, describes the current market phase as the “Boring Phase,” drawing comparisons between the 2017 and 2025 cycles. This period typically involves heavy accumulation by investors before potential future price movements.

The expanding user base has potential implications for the network’s stability. More wallets enhance network decentralization, potentially making the ecosystem more resistant to manipulation and extreme price swings.

The combination of institutional interest through ETF filings and the growing user base presents a complex market picture for Dogecoin. Trading data shows the cryptocurrency needs stronger momentum to break through the $0.30 resistance level.

Technical indicators suggest continued price consolidation in the near term, with the Bollinger Bands showing contracting volatility. Analysts expect tight consolidation at current price levels over the coming weeks.

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