Dogecoin (DOGE) Price Shows Early Signs of a Potential Rally as a Well-Defined Bull Pennant Appears

This DOGE price trend has come amid Bitcoin's recent rally to an all-time high of $111,000, as traders shift attention toward alternative assets with higher volatility.

Dogecoin price is showing early signs of a potential rally as a well-defined bull pennant appears on the 1-hour trading chart. This structure has been forming since May 10, following a sharp increase in price and then a consolidation in the form of a converging range.

Dogecoin Price Technical Analysis: Bull Pennant Suggests Upcoming Rally

After pivoting higher from the key Fibonacci support at $0.16416, Dogecoin price is now forming a classic bull pennant, according to crypto analyst Ali Charts. Often, this pattern follows a sharp increase in price and then a consolidation in the form of a converging range.

At the time of writing, Dogecoin is currently priced at $0.2296, well below the 0.786 retrace level at $0.23544, which is currently acting as near-term resistance.

Descending resistance and ascending support come together and converge to an apex and form a pennant. Since May 10, this structure has been developing.

Within the pennant, price movements have been gradually becoming narrower, suggesting growing tension and a possible breakout. This consolidation has also seen volume trend downwards which is consistent with how this pattern typically plays out.

A confirmed breakout above the upper resistance trendline of the pennant could lead to a price target of around $0.31. This target is based on the measured move from the initial surge that created the flagpole leading into the pattern.

The Fibonacci retracement levels are being drawn from the swing low of $0.16416 to the high of $0.25973. These levels are acting as critical support and resistance markers for the cryptocurrency.

Recent pullbacks have held at the 0.618 Fib at $0.21798. Currently, price is meeting resistance at the 0.786 Fib at $0.23544.

The chart indicates that a breakout from this wedge is consolidating with the 0.786 Fib level. If this level ever flips into support levels, analysts say a quick rebound should move the pair toward the previous high around $0.25973.

The next price targets are the 1.27 and 1.41 levels in Fib, which imply a surge to $0.29425 and $0.31406, respectively. If the price fails to break out and instead reverses, the key levels to watch include $0.21798 and $0.20649. These are the 0.618 and 0.5 Fib levels, and they will be crucial in maintaining the current bullish outlook.

Dogecoin Price Shows Early Signs of Recovery As Realized Profits Soar 225%

On-chain data from Whale.io reveals that Dogecoin’s realized profits saw a sharp rise. In the past 24 hours, profits increased by 225.58 percent, bringing them to $36.1 million.

Additionally, daily transaction volumes rose to $595.9 million, suggesting increased trading action across platforms.

Open interest, as per Coinglass, climbed 59.64% to $3.02 billion, while trading volume surged 62.99% to $7.68 billion. Dogecoin price’s short-term movement saw growing trader interest, evidenced by options volume jumping over 200%. Now, options open interest is $745.09 million.

These figures indicate that a number of traders are actually taking part in the Dogecoin market. Derivatives’ increase in volume is also indicative of growing expectations of further price movement. A breakout from this chart pattern will increase the momentum with more buyers coming into the market.

Dogecoin Price May Soar Toward $6 In Another Round Of Bottom Formation

Technical analyst Trader Tardigrade shared observations on Dogecoin’s 6-month chart. According to the analyst, Dogecoin price is currently completing a third-round bottom formation. Similar patterns appeared before major rallies in 2017 and 2021.

The first pattern formed from 2014 to 2017 and ended with a sharp rally. A second similar phase between 2018 and 2020 preceded the 2021 surge when DOGE reached above $0.6. The third-round structure appears to be forming from 2022 through 2025.

“This is the third cup forming in the long-term DOGE chart. The previous two led to powerful rallies. May be another long-term accumulation phase on the lower timeframes. If plays out as before, projecting a move toward $6,” Tardigrade shared on X.

The pattern may represent another long-