Dogecoin price forecast remains bullish following a 5% daily gain and 42.5% monthly rally as sovereign Bitcoin adoption fuels sentiment.
Saudi Arabia’s Bitcoin Signal Lifts Dogecoin and Memecoin markets
On May 16, Saudi Arabia’s Central Bank confirmed the purchase of 25,656 shares of Strategy (formerly MicroStrategy), a company holding over 200,000 BTC. The $10.2 million investment came during former U.S. President Donald Trump’s diplomatic visit to Riyadh and has been widely interpreted as a signal of indirect Bitcoin adoption by the oil-rich kingdom.
This development, viewed as a major milestone in sovereign Bitcoin accumulation, has electrified crypto markets. Ethereum jumped 3% on Sunday to reclaim $2,550, accompanied by a trading volume surge from $12.5 billion to $15 billion.
Bitcoin itself retested the $105,000 mark, buoyed by speculation that further investments from other sovereign wealth fund mirroring Saudi’s move could ignite another leg up toward new all time highs, in the week ahead, with long-term predictions from the likes of Entrepreneur Robert Kiyosaki setting optimistic targets around $250,000 before the end of 2025.
Dogecoin price action, May 18, 2025 | Source: Coingape
But while headlines focus on Bitcoin and Ethereum, Dogecoin price has quietly rallied by another 5% on Sunday.
Notably, DOGE’s 42.5% upswing over the past 30 days, also outpaces both BTC and ETH on the monthly timeframe.
Dogecoin’s Correlation with Bitcoin: What History Tells Us
Dogecoin has long mirrored Bitcoin’s momentum, often amplifying directional shifts in highly speculative phases of the cycle.
In early 2021, when BTC price rallied from $30,000 to $64,000, DOGE surged over 900% in close correlation to the pioneer crypto asset. During that run, DOGE moved not on fundamentals but on positive sentiment and increased market liquidity trickling down from the BTC rally, both of which are now back in play.
With BTC dominance rising again and macro catalysts, such as sovereign institutional flows from countries like Saudi Arabia, now in focus, Dogecoin is set to follow any parabolic move in Bitcoin.
Moreover, Michael Saylor, the CEO of Strategy, hinted at another potential Bitcoin purchase in a May 16 post on X (formerly Twitter), further boosting investor confidence that whales are gearing up for a long-anticipated supply squeeze.
As long as BTC remains in a bullish structure and continues attracting macro attention, Dogecoin stands to benefit disproportionately due to its historical sensitivity to retail inflows and social momentum.
Dogecoin Price Prediction if Bitcoin Hits $250,000
Assuming Bitcoin reaches $250,000—a roughly 285% increase from current levels, Dogecoin could see a parabolic rally, reflecting its historical beta to BTC. Based on prior bull market multipliers, a conservative 3.5x correlation factor would place DOGE near $0.78 to $0.85, aligning with prior cycle tops.
This projection assumes steady liquidity conditions, continued positive sentiment, and sustained retail participation.
In the near-term key psychological levels at $0.30 and $0.50 could serve as intermediate resistance levels to imminent Dogecoin price rally attempts but the rapid Bitcoin acquisition race heating up among countries and corporate institutions.
Should Saudi Arabia’s latest purchase of Microstrategy shares may enhance Bitcoin’s status as a sovereign-grade asset and further legitimize crypto’s role in global trade.
In that context, DOGE may again serve as a speculative bet on the Bitcoin-fuelled rally.
Dogecoin Price Forecast Today: Bulls Face Short-Term Resistance at $0.25
Dogecoin’s recovery from the May 13 pullback has taken form above the $0.21 support level, confirming bullish continuation signals on the daily chart.
DOGE is currently trading at $0.2255, marking a 5.13% gain on the day, and establishing price action above both the Parabolic SAR baseline ($0.2107) and the 100-day SMA ($0.1938), signaling that the short-term trend remains upward.
The Parabolic SAR dots flipping below the candlesticks indicate a resumed uptrend, supported by flattening sell-side momentum on the MACD histogram. Although the MACD line (0.0142) has curved slightly lower, it remains above the signal line (0.0133), suggesting that bullish momentum has not yet been invalidated and a new leg higher remains likely.
Dogecoin price forecast
In the context of the current consolidation, the 150-day SMA at $0.2405 presents the next major upside barrier.
If DOGE breaches this level on a decisive daily close, a move toward $0.2650 could unfold quickly amid momentum-following interest.
Conversely, a failure to reclaim $0.24 may invite a retest of $0.2100, which must hold to keep the bullish oper intact.
Dogecoin price forecast today remains tilted in favor of the bulls as long as the pair sustains above the $0.21 support level.
The constructive posture of the moving averages, paired with subdued bearish divergence in momentum, offers a base case for a $0.24 retest this week. Further upside will depend on broader crypto sentiment and whether BTC sustains its position above $105,000.
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Coingape Staff
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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
