Dogecoin Skyrockets on May 8th—What’s Next for the DOGE Price?

Updated

May 8, 2025

Gambar Dogecoin Skyrockets on May 8th—What’s Next for the DOGE Price?

Jakarta, Pintu News – Dogecoin price is struggling to break the $0.18 resistance level as geopolitical tensions rise. Here is a prediction of how DOGE could react if its value is equivalent to 30% of the M1 money supply in the US.

Before that, let’s explore today’s Dogecoin price movement first!

Dogecoin Price Rises 3.43% in 24 Hours

On May 8, 2025, Dogecoin saw a 3.43% jump in just 24 hours, trading at $0.1770, or around IDR 2,832. During the day, DOGE hit a low of IDR 2,800 and climbed to a high of IDR 2,931.

At the time of writing, Dogecoin’s market cap stands at around $26.38 billion, with trading volume falling 17% to $706.81 million within 24 hours.

US M1 Money Supply Trends Favor Long-Term Bullish Outlook for Dogecoin

Like other risky assets, the price of Dogecoin (DOGE) tends to get a boost when central banks expand liquidity, especially through increasing M1 money supply in the US.

M1 includes physical cash and demand deposits-the most liquid part of the money supply.

Based on the latest data from the Federal Reserve, M1 supply in the US currently stands at around $18.5 trillion, more than doubling since the pandemic in 2020.

This expansion has historically benefited riskier assets such as tech and crypto stocks. The rise in M1 usually correlates with looser financial conditions, increased speculative capital, and inflows from retail investors into digital assets.

With inflation persisting and fiscal deficits rising, analysts expect the Fed to remain under pressure to maintain accommodative liquidity conditions until 2025.

The correlation between rising M1 and crypto price appreciation has proven to be consistent in the past few bull cycles.

With the Dogecoin ETF under review by the US Securities and Exchange Commission (SEC), if approved, many investors see it as a speculative hedge against fiat currency depreciation.

If the adoption of DOGE increases amid monetary expansion, its price could potentially experience a parabolic surge.

Predicted Dogecoin Price If Equivalent to 30% of US M1 Money Supply

The Dogecoin price is estimated to reach around $35.60 per coin if its value is equivalent to 30% of the total M1 money supply in the United States. This projection is based on a valuation of $6.1 trillion (30% of $18.5 trillion) assuming a total DOGE supply of 150 billion coins.

This speculative scenario represents a jump of approximately 20,700% from the current price of $0.1712. This projection presupposes widespread adoption of Dogecoin in transactions, payments, and reserves in the US-something that is unlikely to happen, but still mathematically plausible.

Even if Dogecoin only makes up 5% of M1, its price is expected to hit $5.93, well above its record high in 2021 of just $0.73.

However, a price spike of this magnitude would require strong fundamental triggers, such as the integration of Dogecoin in the mainstream financial system and increased institutional demand-including from the potential approval of a Dogecoin ETF.

Dogecoin Price Prediction Today: Bears Target Key Support at $0.1640

Today’s Dogecoin price prediction shows mild bearish tendencies, as the meme token struggles to stay above the Bollinger Band’s midline and the 20-day simple moving average (SMA), both of which are currently around $0.1722.

The last daily close at $0.1715, which is just below that centerline, confirms the weakening of the bullish momentum and increases downside risks, especially since the upper boundary of the Bollinger Band at $0.1912 is still out of reach.

In addition, the price of DOGE briefly touched $0.1642 in the previous session, forming a long lower shadow-which is often an indication of increasing selling pressure below the $0.17 level.

Technical indicators support this cautious view. The Bollinger Bands have started to narrow after several weeks of widening, which hints at a decrease in volatility and a potential sharp move in the near future.

If $0.1715 fails to hold within the daily close, DOGE risks retesting the lower boundary of the Bollinger Band at $0.1532, with intermediate support at $0.1640 as the next bearish target.

Instead, a strong daily close above $0.1750 is required to invalidate the current bearish pattern and open up a short-term rally opportunity. Until that happens, Dogecoin still seems vulnerable to a gradual decline towards $0.16 in the next few days.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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