Dogecoin (DOGE) Shows Signs of a Potential Rally Despite Its Recent Bearish Performance

Dogecoin, the popular dog-themed cryptocurrency, is showing signs of a potential rally despite its recent bearish performance.

Dogecoin price is showing strong signs of a potential rally despite recent bearish performance, with technical developments suggesting that the current pullback may be setting the stage for a meaningful upward movement in DOGE’s price.

At the time of writing, Dogecoin is trading at $0.2296 after gaining 2.47% in the last 24 hours.

While this modest gain might not seem anything special at first glance, underlying metrics highlight a buildup of momentum that could translate to more substantial price action.

Recently, crypto analyst Trader Tardigrade highlighted that DOGE is gearing up for a major rise as a key technical pattern emerges on the daily chart.

The meme-inspired cryptocurrency is currently consolidating in a Channel Pullback formation, which is often an indication of a continuation of the trend after a slight cooling off from recent highs.

This channel, combined with stable support levels and increasing market sentiment, suggests that DOGE is preparing for a breakout in the upcoming days.

According to the chart, this Channel Pullback pattern previously appeared between late April and early May. After breaking out of that pattern, Dogecoin experienced a significant rally, surging from $0.17 to $0.25 in less than a week.

As the structure reappears, analysts say that a breakout, which they believe is inevitable, is likely to trigger a similar upward trend.

On-chain data from Whale.io is showcasing an increasingly bullish picture for Dogecoin. In the past 24 hours, there has been a massive 225.58% increase in realized profits, amounting to $36.1 million.

This surge indicates that many traders are realizing impressive gains with DOGE’s price movements.

There has also been a sharp rise in daily transactions, which increased by 7.93% to reach $595.9 million, suggesting increased user interest and activity around the meme-themed crypto asset.

Trading volume has experienced a significant spike, showcasing an increment of 63.39% to $2.71 billion over the last 24 hours. This suggests heightened activity from both retail and institutional investors.

The average buy price for DOGE decreased by 1.02% over the last 30 days, but it still stands at $0.159. Although the drop isn’t huge, it shows that new buyers are making their purchases at prices slightly lower than previous buy levels.

Dogecoin’s bullish signals extend beyond the daily chart. Analysis of the 3-day time frame highlights a buildup of momentum, which increases the potential for a rebound.

An Expanding Triangle formation has been identified on the 3-day chart, which is a key reversal pattern after a period of widening consolidation. Given that the market is slowly becoming more positive, a breakout from this pattern is expected to potentially drive a rally to $0.275 and beyond.

#Dogecoin has formed a Channel pullback again 🔥A breakout is inevitable 🚀$Doge pic.twitter.com/rAgTqibnif

— Trader Tardigrade (@TATrader_Alan) May 20, 2025

Should the channel breakout occur in a similar manner to the previous instance, analysts predict a surge from current price levels to the $0.265 mark.

A view of a much larger time frame shows that DOGE’s price could be en route to significant gains before the ongoing market cycle comes to an end.

Technical analysts have highlighted the reappearance of a bullish structure that triggered massive moves for the meme coin on the 6-month time frame.