Key Insights:
- Dogecoin price holds trendline support, eyeing $0.30 if buyers reclaim $0.18.
- Falling wedge breakout could push DOGE 252% higher toward $0.65.
- Bullish flag formation targets $0.25 if resistance at $0.18 breaks.
Dogecoin (DOGE) price is flashing bullish signals as technical indicators, and the on-chain metrics indicate a possible rebound. The meme coin price action has developed several bullish setups, such as a trendline support, a falling wedge, and a bullish flag that all point to a potential recovery to $0.65. But in order for this momentum to become a reality, critical resistance levels need to be regained.
Dogecoin Holds Long-Term Trendline Support
Dogecoin price has been holding support along its rising trendline since October 2024, according to the recent chart analysis by Ali.
This trend line that is currently intersecting near to $0.14 also historically operated as a very important support level during market corrections. If this level retains strength, then this might be the starting point for a wider recovery back to $0.30.
According to IntoTheBlock, on-chain data supported this outlook as the number of active DOGE addresses has increased by 15% in the past two weeks.
Such an increase in network activity indicates an increasing customer interest in DOGE because traders expect a possible rise in price.
Further, the volume of DOGE owned by addresses with holdings between 10000 – 1000000 coins has risen by 6%, which means that mid-tier investors are amassing ahead of a breakout.
Wedge Breakout Could Trigger a 252% Surge
Furthermore, Javon’s analysis presented a falling wedge pattern, a classic bullish reversal setup, potentially targeting $0.65, a 252% upside from current levels.
This pattern, characterized by converging trendlines and a bullish divergence on the RSI, often signals the end of a downtrend and the start of a new bullish phase.
On-chain signals reinforced this possibility. Santiment data showed a significant drop in exchange reserves, indicating traders are withdrawing DOGE from exchanges, a telltale sign of long term optimism.
In the last month, DOGE supply on exchanges has decreased by 8.4% taking the pressure off the immediate sell and setting the stage for a sustained rally.
Bullish Flag Pattern Targets $0.25
World of Charts pointed out a bullish flag pattern on the 4-hour timeframe, which suggested that DOGE price can reopen above $0.18 resistance to reach $0.25. This formation is a form of consolidation after a strong uptrend, which is usually a warning of more upside.
Backed by this bullish set-up, the recent on-chain data revealed a 32% increase in the number of whale transactions above $100,000, indicating that long-term investors are preparing themselves for a possible rally.
This surge in high value deals is indicative of re-activated interest from institutional and high net worth investors thereby strengthening the argument for a major price breakout.
Network Growth and Whale Accumulation
Beyond technical setups, Dogecoin’s broader network metrics presented a positive backdrop. According to Glassnode, DOGE’s mean transaction size has increased by 14% over the past month, reflecting growing confidence among investors.
Additionally, the number of newly created DOGE addresses has climbed by 10% in the same period, further signaling a resurgence in network activity.
In addition, DOGE’s supply held by long term holders, defined as wallets that have not moved their coins in over a year, has reached a five-month high. This metric speculates that the long term investors are becoming increasingly optimistic about the future prospects of DOGE. Thus, chances of reduced sell-off given that prices are rising.
Key Levels to Watch
To benefit from these bullish signals, Dogecoin price must also break through the $0.18 resistance for the flag pattern to be confirmed and the larger trend to be reversed.
If this level is broken with a high volume, the next major targets are $0.25 and $0.65, as indicated by the wedge breakout projections.
However, a breakdown below the $0.14 trendline support could be a bearish sign for this bullish sentiment and may cause DOGE price to consolidate over a long-term period.