Dogecoin Pulls Back to $0.22, But Bullish Signals and High Targets Persist

Quick overview

Dogecoin DOGE/USD is currently trading at $0.22, down over 7% in the past 24 hours, yet technical indicators suggest the popular memecoin could be preparing for a significant rally reminiscent of its late 2024 surge.

Whale Wallets Boost Holdings to 17.1% Amid “Taker Buyer Dominance”

On-chain data expose aggressive buildup by big investors with addresses under control of 100M-1B DOGE is raising their stake from 15.69% in March to today 17.1%. Based on CryptoQuant data, DOGE’s spot taker 90-day CVD stays “taker buyer dominant”—a trend not observed prior to the 385% increase to $0.48 in Q4 2024.

Since most holders stay in profit, the long-term holder NUPL reaching 0.5 demonstrates a change to “belief” feeling and suggests lower selling pressure.

US-China 90-Day Tariff Reduction Fuels Risk-On Market Sentiment

Market mood has been much lifted by the recent deal between the US and China to cut tariffs: US dropping from 145% to 30%, China from 125% to 10%. DOGE has risen almost 70% since the April 7 crash to $0.13, thanks to bettering world trade relations.

US Treasury Secretary Scott Bessent emphasized the Trump administration’s commitment to “more balanced trade” without economic decoupling.

Third MACD Bullish Crossover Since 2024 Triggers Breakout Forecast

On May 7, Dogecoin’s weekly chart showed a bullish MACD crossover—the third such signal since 2024. Previous events preceded 180% and 385% rallies, which prompted analyst Trader Tardigrade to project a similar path. RSI at 62 is well below overbought area (70), hence there is still plenty of space for price rise.

$0.25 Innovative Targeting Five-Month Trendline Oppression

DOGE is testing a major declining trendline that caps its price since December. Trader Javon Marks projects “$0.6533 can be coming in another nearly +180% upside and prices could even break above, bringing $1+ into play. A sustained close above $0.25 could set off a breakout toward immediate targets at $0.30 and $0.40.”

The key support levels at $0.225; followed by the 200-day EMA ($0.21), 100-day EMA ($0.20), and 50-day EMA ($0.18).

Derivatives Show Institutional Bullishness Despite Recent 5.7% Correction

Following the May 11 decline, open interest in DOGE futures decreased 7.29% to $2.80 billion; options open interest jumped 49.49%, suggesting posture for more significant price swings. Top traders on Binance and OKX keep rather optimistic attitudes with long/short ratios above 5.0.

Dogecoin Price Prediction: Key Catalysts That Could Propel DOGE Beyond $1

The increasing trend of Dogecoin might quicken across:

• Strategic Business Integration: Increased utility and daily usage would result from more merchant adoption.
• Filings from Grayscale and Bitwise could open institutional capital flows through ETF approval.
• Bitcoin Price Action: Dogecoin gains disproportionately during Bitcoin rallies; its 0.67 correlation to BTC helps here.
• Speculation regarding Elon Musk including DOGE into X fuels market interest even now.

Though gepolitical tensions could cause short-term volatility, Dogecoin’s technical foundation is still robust as it gets close to a pivotal decision point between rapid expansion and ongoing consolidation.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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