Is Dogecoin gearing up for a major surge? Analysts point to three key drivers that could potentially propel the price of the leading "meme coin" by up to 110% in the coming months. Analysis of technical trends, whale activity, and favourable market conditions.
The Dogecoin (DOGE), the most popular meme coin, could be on the verge of a major bullish breakthrough. Three technical factors, flow and institutional investor activity, seem to be aligning to fuel a significant price increase in the coming months.
On the chart, Dogecoin is showing encouraging signs. Since its April low, DOGE has already surged by 75%, reaching $0.228. On the daily chart, the price is now approaching a potential bullish breakout, forming what appears to be a bullish flag. This technical pattern, characterized by a vertical rally followed by a consolidation phase, is generally associated with a continuation of the positive trend.
Furthermore, DOGE is set to form a “mini golden cross”, with the reversal of the difference between the 50 and 100-day exponential moving averages. These technical patterns suggest an aggressive breakout once the flag formation is resolved, with a key resistance to watch at $0.4815. Breaking above this level would present a potential 110% upside from current levels. However, a drop below the psychological support at $0.20 would invalidate this bullish outlook.
A bearish divergence in the RSI and other indicators urge caution in the coming weeks. Indeed, Bitcoin and the crypto market have seen several weeks of uninterrupted gains. The probabilities of retracements increase daily.
Moreover, the DOGE flag could be used by smart money to “distribute” one last time before the retracement. If this bearish scenario materializes, DOGE could target its Point of Control at $0.17. This area should act as a strong support and provide a prime opportunity to jump on DOGE before its surge in 2025.
Therefore, it will be crucial to monitor DOGE between $0.25 and $0.27 if it regains these levels in the coming days.
The positive funding rate of Dogecoin is also a crucial element. In perpetual futures markets, a positive funding rate means that long position holders pay fees to short sellers. This reflects a bullish market expectation and typically fuels an upward trend.
Lastly, data shows that large institutional investors continue to accumulate Dogecoin massively. According to Santiment, addresses holding between 100 million and 1 billion DOGE now control over 26.46 billion tokens, a level not seen since December 2023. Their holdings are significantly increasing, up from 23 billion in January.
This accumulation trend is reinforced by sustained outflows from exchanges since November 2023, totaling over $695 million since April. This movement of liquidity off platforms is generally seen as a long-term bullish signal.
In conclusion, Dogecoin appears to have all the ingredients for a potential significant price surge in the coming months. Technical signals, positive funding flows, and accumulation by institutional whales all contribute to a substantial price increase, potentially up to 110% above current levels. Investors and traders should closely monitor these developments to best capitalize on this opportunity.
Here is a simple and quick guide to buying Dogecoin (DOGE) on Bitget in a few steps:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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