Dogecoin Eyes Explosive 110% Rally as Market Indicators Flash Green
Dogecoin (DOGE), the original and most widely recognized meme coin, appears poised for a major breakout, with analysts forecasting a potential 110% price surge in the coming months. A convergence of bullish technical indicators, increased whale accumulation, and consistently positive funding rates is fueling optimism among traders and long-term holders alike.
Technical Setup: Bullish Flag Signals Breakout Potential
As of May 29, 2025, Dogecoin is trading near $0.2230, up approximately 75% from its April lows around $0.13. The daily chart reveals the formation of a bullish flag pattern—a classic continuation signal that typically follows a strong upward move. This setup suggests that DOGE is consolidating before potentially launching into another leg higher.
A breakout above the upper boundary of the flag could trigger an aggressive rally toward the next major resistance at $0.4815, a level last seen in November 2023. Reaching this target would represent a 110% gain from current levels.
Adding to the bullish picture is the emergence of a “mini golden cross,” where the 50-day EMA has crossed above the 100-day EMA. Dogecoin is also trading above all major moving averages, signaling strength in the ongoing trend.
However, the Relative Strength Index (RSI) currently sits at 54.87, indicating neutral momentum. A bearish divergence—where price makes higher highs while RSI lags—could hint at a weakening rally. A break below the psychological support level at $0.20 would invalidate the bullish setup, potentially leading to a retest of the $0.17 support zone, known as a historical point of control.
Futures Market: Funding Rates Remain Positive
The open interest (OI)-weighted funding rate remains another key bullish signal. Data from CoinGlass shows DOGE’s funding rate has stayed consistently positive since March 31, with peaks corresponding to price increases.
Importantly, these funding rates haven’t spiked into overheated territory, suggesting continued strong interest from leveraged traders without signs of unsustainable exuberance. This reinforces the bullish outlook, especially when paired with rising open interest levels.
Whale Accumulation Hits Multi-Month High
Institutional and large-scale holders—commonly referred to as whales—are also showing renewed confidence in Dogecoin.
Blockchain analytics from Santiment reveal that wallets holding between 100 million and 1 billion DOGE now control more than 26.46 billion tokens, the highest level since December 2023. That’s a substantial increase from just 23 billion DOGE in January 2025.
Additionally, on-chain data shows over $695 million in DOGE has been withdrawn from centralized exchanges since April 1, 2025. Such outflows typically signal that investors are moving assets into self-custody for long-term holding, rather than preparing for short-term selling.
Key Levels and Indicators to Watch
To confirm the continuation of this bullish trend, traders and investors should monitor:
-
Resistance Zone: $0.25 – $0.27
A break and hold above this area could pave the way for a move toward $0.4815. -
Support Level: $0.20
A drop below this level may invalidate the bullish pattern and trigger a correction to $0.17. -
RSI Patterns
Watch for divergence or signs of overbought conditions as early indicators of potential pullbacks. -
Volume Confirmation
A breakout from the current flag pattern accompanied by a spike in volume would solidify bullish momentum.
Conclusion: Bullish Momentum Builds, but Caution Remains
Dogecoin is at a critical juncture. The combination of a bullish flag pattern, a mini golden cross, sustained positive funding rates, and growing whale accumulation paints a strong case for continued upside. Should DOGE decisively break above $0.27, a rally toward $0.48—a 110% gain—looks increasingly likely.
Still, investors should remain aware of potential warning signs, such as RSI divergence and key support levels breaking. While the broader picture remains optimistic, prudent risk management is advised in the face of rapid market shifts.
Disclaimer and Risk Warning
coinweck does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party. coinweck should not be held responsible for image copyright issues. Contact us if you have any issues or concerns. Readers should do their research before taking any actions related to the company.