A renewed wave of optimism is spreading through the Dogecoin market

A respected voice in crypto sector, “Steph is Crypto,” believes Dogecoin is lining up for a massive rally of more than 500%

A renewed wave of optimism is washing over the Dogecoin market as analysts are spotting a chart pattern that strikingly similar to the coin’s historic breakout. A respected voice in the crypto sector, ‘Steph is Crypto,’ believes Dogecoin is lining up for a massive rally of more than 500%. This bold claim is based on past market behavior.

Earlier this year, Dogecoin underwent a long downtrend for 129 days before it finally exploded from around $0.067 to a high of $0.403. This marked a staggering 501.63% climb. Now, Steph sees the same setup forming again after a similar 129-day slump could see it reach as high as $0.73583 in the coming weeks.

“Bottom signal flashing,” Steph posted on X, alerting followers to get ready for the move. The post emphasized the possibility of a powerful breakout coming soon, based on the recurrence of the same fractal that led to the prior surge.

On the other hand, a separate analysis by SwallowAcademy on TradingView paints a different path for Dogecoin—one that suggests it might fall before it soars.

Focusing on Dogecoin’s price action against Tether (USDT) on a daily timeline, the chart highlights the cryptocurrency’s volatile nature, especially evident in 2024. After touching nearly $0.23 earlier in 2024, the coin saw a sharp pullback, dipping to $0.09 before rebounding to trade above $0.45.

Expecting a comparable trend to continue in 2025, the analyst predicts a 40% decline could see Dogecoin retest the $0.09 support level. From there, the analyst believes it could rally fourfold, eventually retesting the $0.45 mark.

As it stands now, Dogecoin hovers above the $0.15 mark, and SwallowAcademy is continuing to monitor for the predicted dip before entering a long position. This approach underscores a cautious optimism, hinting that the road up may come after another fall.

Shifting Holder Activity Signals Growing Speculation

Meanwhile, data from IntoTheBlock offers additional insights into Dogecoin’s outlook. The activity among holders shows a significant shift. Long-term holders, defined as those who have held the coin for a year or more, saw a 2.67% decrease over the past month. Cruisers, those holding for one to twelve months, saw a 11.81% decline.

However, the number of short-term Dogecoin holders has soared. Traders who held the token for less than a month saw a 107.45% increase, suggesting a substantial increase in speculative interest. This shift hints at heightened short-term volatility as these quick movers react to market fluctuations.

Another angle offers a stronger long-term view. The data reveals that large holder inflows, i.e., investors moving significant volumes, are increasing at a steep pace. Over the past week, these inflows have increased by 5.33%. In the last 30 days, the rise stands at 323.86%. The most significant change, however, is a staggering 3,722% increase in large holder activity over the past 90 days.

This level of accumulation suggests that major players are preparing for a bigger move ahead, even as smaller, short-term traders fuel the day-to-day price swings. Together, these patterns reflect a complex but increasingly hopeful landscape for Dogecoin’s future.