Dogecoin (DOGE), the leading memecoin by market capitalization, is trading higher by 2.12% Wednesday, currently priced at roughly $0.1719. 

The positive price action follows broader optimism within the crypto market sparked by the U.S. Securities and Exchange Commission (SEC) dropping its long-standing lawsuit against Ripple Labs. The resolution of the XRP case has generated renewed bullish sentiment across cryptocurrencies, notably among memecoins like Dogecoin.

Wednesday's price predictions from analysts reflect a cautiously optimistic outlook for DOGE:

Investor optimism surrounding Dogecoin has also been boosted by recent institutional developments. 

Earlier this year, Grayscale Investments, the world’s largest digital asset manager, launched the Grayscale Dogecoin Trust, enabling accredited investors greater access to the memecoin. Additionally, Bitwise Asset Management submitted an application to the SEC for a spot DOGE exchange-traded fund (ETF), underlining a nascent but growing institutional interest. 

According to Polymarket, market participants currently see a 70% likelihood that the DOGE ETF will gain approval in 2025.

While Dogecoin started as a playful cryptocurrency in 2013, the memecoin evolved after endorsements by high-profile figures like Elon Musk, who repeatedly boosted its popularity through social media. Recent support also comes from former President Donald Trump's administration, which has adopted a notably pro-crypto stance, further fueling DOGE's bullish narrative.

However, investors should approach optimism carefully. Kalshi, a prediction market platform, places just a 12% probability on Dogecoin reaching the $1 milestone before September 2025. Further, despite the improved regulatory climate, DOGE is vulnerable to volatile market swings driven by social media trends and speculative cycles.

Technical analysis from Wallet Investor outlines important trading levels for DOGE. Immediate resistance sits around $0.173, with further resistance at $0.181. On the downside, Dogecoin has support at $0.164, with a lower boundary at $0.146 if sentiment turns bearish.

Despite the risks, Dogecoin's strong community engagement, institutional backing, and recent regulatory developments offer tailwinds. Investors should weigh bullish factors against inherent market volatility, monitoring technical levels and broader macroeconomic indicators.