Dogecoin jumped nearly 15 percent this week, driven by both a major technical breakout and growing optimism around U.S. crypto regulation as a stablecoin bill heads to President Trump.
Key Takeaways
- 1Dogecoin surged to $0.2376, breaking a 7-month downtrend with strong volume support.
- 2The U.S. House passed the Genius Act, a bill to regulate stablecoins, now awaiting Trump’s signature.
- 3The legislation received bipartisan support and is seen as a landmark moment for U.S. crypto regulation.
- 4Together, the breakout and policy news have reinvigorated confidence in the crypto sector.
Dogecoin Breaks Out with Technical Strength
After months of stagnation, Dogecoin finally made a bold move. The price jumped to $0.2376, marking a nearly 15 percent gain and breaking above a long-standing descending trendline that had capped growth for over seven months.
This move wasn’t just about price. Volume surged, adding credibility to the breakout. According to technical analysts, this setup is nearly identical to October 2023, when Dogecoin staged a 600 percent rally. If the trend holds, the next target zone lies between $0.50 and $0.60.
The breakout candle remains strong, but the real test comes Sunday. If Dogecoin closes the weekly chart above resistance, analysts say this could confirm a long-term bullish shift.
Stablecoin Bill Adds Regulatory Momentum
While Dogecoin rallied, lawmakers in Washington were making headlines of their own. On Thursday, the U.S. House of Representatives passed the Genius Act, legislation aimed at creating a federal framework for stablecoins.
The bill passed with bipartisan support (308–122) and now heads to President Donald Trump, who is widely expected to sign it into law. It requires that U.S.-pegged stablecoins be:
- Fully backed by liquid reserves, like cash and short-term Treasury bills
- Subject to monthly public disclosures of reserve holdings
- Issued under a clear regulatory framework, providing compliance clarity
The crypto industry has long called for this kind of legislation. In fact, crypto interests spent more than $119 million backing pro-crypto candidates during last year’s elections to push for supportive regulation.
Summer Mersinger, CEO of the Blockchain Association, called the vote a “defining moment in the evolution of U.S. digital asset policy.”
Two Events, One Bullish Signal
The convergence of technical strength and regulatory clarity has created a unique moment for the crypto market. Dogecoin’s price action isn’t just about meme coin momentum, it’s responding to a broader shift in sentiment across the industry.
Here’s how it stacks up:
- Traders are reacting to clear signs of trend reversal in DOGE
- Investors are encouraged by Washington’s move to establish crypto rules
- Together, they’ve sparked renewed confidence in altcoins and stablecoins alike
DOGE often acts as a sentiment barometer for smaller tokens. Its rise could lead to a rally in other memecoins and altcoins, just as it has in past cycles.
CoinLaw’s Takeaway
I’ve got to say, this week felt like a double win for crypto. We’re seeing a clean technical breakout in Dogecoin and finally, some real progress on the regulatory front. For years, the crypto industry has begged for clarity, and now that a stablecoin law is headed to Trump’s desk, it feels like we’re finally getting somewhere. Dogecoin might just be the spark that lights the fire across the market.
