Dogecoin (DOGE) is again gaining traction as bullish momentum returns to the meme coin market. After consolidating for several days, DOGE has rebounded 3.56% today, trading at $0.2270. With renewed buying pressure and a bullish chart formation, analysts believe DOGE may be preparing for a breakout rally toward $0.35.
Bull Flag Pattern Forms After Price Pullback
On the 4-hour chart, Dogecoin is currently trading inside a bull flag pattern, which typically follows a sharp upward move and precedes further gains. Last week’s 53% surge, which pushed DOGE to a local high of $0.25 on May 11, laid the foundation for this pattern.
Since that peak, the price has pulled back, forming a series of lower highs and a descending trendline, while strong support at $0.2183 has created a converging triangle. This setup aligns with a classic bull flag formation, with DOGE now showing early signs of a potential breakout.
Today, the price is printing a bullish engulfing candle near the base of the pattern, further supported by a modest 3% intraday gain. This action suggests that momentum may be building for a decisive move higher as DOGE nears the flag’s apex.
Technical Indicators Support a Bullish Move
Several indicators now favour a bullish breakout. The Relative Strength Index (RSI), which had previously dipped below the midline, has climbed back toward neutral territory, signalling renewed momentum.
Meanwhile, the MACD and signal lines are approaching a bullish crossover in the negative region. The weakening bearish histogram bars also point to a shift in sentiment, potentially validating the breakout thesis.
If DOGE breaks out of the bull flag, analysts expect a 53% move upward, targeting $0.3543. However, if the price falls below $0.2183, the pattern would be invalidated, and DOGE could retest the $0.20 support zone.
Related article: Dogecoin to $10? Analyst Charts Legendary Trendline and Declares DOGE Holders ‘Absolute Legends’
Whale Accumulation and Network Growth Fuel Optimism
Beyond technicals, Dogecoin’s bullish outlook gains further credibility from strong on-chain metrics. According to Ali Martinez, large holders have been accumulating DOGE aggressively. Over the past month, whales purchased over 1 billion DOGE, bringing total holdings to 25.97 billion DOGE.
This surge in whale activity suggests growing confidence among institutional and high-net-worth investors, often considered a precursor to major price moves.
In addition, Dogecoin’s network usage has grown substantially. Transaction volume has climbed to nearly $549 million, while daily active addresses recently peaked at 69,200. These metrics highlight expanding adoption and increasing user engagement, strengthening DOGE’s long-term fundamentals.
With whale accumulation rising and a well-defined bull flag pattern forming on the charts, Dogecoin appears primed for a breakout. A successful move above resistance could launch DOGE toward the $0.35 price target, marking another chapter in its comeback story.
