Dogecoin (DOGE) Price Has the Potential to Experience a Large Increase After Forming a Rare Pattern

The price of Dogecoin (CRYPTO: DOGE) has the potential to experience a large increase after forming a rare pattern known as a diamond bottom on the daily chart.

According to technical analysts at Tardigrade Trader, DOGE’s price structure shows a bullish reversal pattern that could push DOGE’s price up by more than 105% to reach $0.35.

This optimistic prediction comes despite the Dogecoin price falling 1.5% in the last 24 hours (7/5) and losing 3% over the past week. However, in the last 30 days, the power is still with the bulls, with the DOGE price rising by 15%.

Diamond Bottom Pattern in Dogecoin Price Hints at a Potential Rally

Read Also: Dogecoin Surges 8.8% On May 8—What To Expect Next From The DOGE Price

Tardigrade traders have identified a diamond bottom pattern on the daily chart of DOGE/USD. This pattern usually signals a reversal to an uptrend (bullish reversal), especially after a long period of price decline.

The breakout level is expected to be in the range of $0.165 to $0.17, which is also the current support level that traders need to watch closely.

This pattern's breakout price target is expected to be between $0.255 to $0.35. The chart shows a dotted green arrow pointing towards the $0.35 level, indicating a continuation scenario for the price rally.

Another crypto analyst, Ali Charts, noted that the Dogecoin price is currently testing the support level at $0.167.

“Keeping this level could trigger a bounce towards $0.175 and maybe even up to $0.183.” Both analysts agree that keeping the $0.165-$0.167 zone is crucial for the upward momentum to continue.

In addition, the Price Momentum Oscillator (PMO) indicator also shows a bullish crossover, further indicating upside potential if buying volume increases.

All of these indicators reinforce the possibility of a Dogecoin price rally, provided that the current support levels are maintained.

DOGE ETF Approval Could Accelerate Dogecoin Price Rise

There is increasing speculation in the market about a Dogecoin ETF (DOGE ETF), with several asset managers such as Bitwise, 21Shares, Grayscale, and REX Shares applying for approval.

They are awaiting permission from the US Securities and Exchange Commission (SEC) to launch a Dogecoin-based ETF. According to data from Polymarket, the chances of a DOGE ETF being approved have increased by 25%, with analysts' predictions reaching a 64% chance of approval before the end of 2025.

Some time ago, the CoinGape page mentioned that if Dogecoin is able to attract 30% to 50% of the fund flow into the Bitcoin ETF, the DOGE price could increase to the range of $0.34 to $0.50.

This scenario predicts $12 to $20 billion in funds coming into the Dogecoin market. This projection also suggests that DOGE’s market capitalization could more than double from its current position.

The approval of this ETF is expected to attract more institutional investors, which will increase the demand for DOGE. This large fund flow is in line with the $0.35 level previously mentioned in the technical analysis.

Analysts stated that the ETF approval news could be the main trigger for the price rally and push DOGE through the $0.255 resistance level.

Read Also: Standard Chartered Says BNB Could Double In Price—Is A Massive Rally Coming?

DOGE’s Holding Behavior Shows Investor Confidence

Recent data from IntoTheBlock shows that investor sentiment towards Dogecoin is improving.

The average holding time of DOGE coins traded increased by more than 526% in the last 90 days. This pattern is similar to the trend that occurred before Dogecoin’s big rally in 2021.

In the last seven days alone, the holding time jumped to four months. This shift from short-term speculation to long-term holdings reduces selling pressure and shows that investors are increasingly confident that DOGE prices will soon rise.

If this trend continues, it could form a more stable basis for further price growth.

Currently, long-term holders dominate transaction volumes—a phenomenon that is often a harbinger of significant price spikes. With supply in the market becoming increasingly limited and demand growing, these signals further reinforce the positive outlook for Dogecoin.