3 Top Reasons Why Dogecoin Price Could Rise 110% Soon

Dogecoin may soon experience a strong breakthrough as the bullish flag forms, whale accumulation accelerates, and the funding rate remains positive. Dogecoin, the largest meme coin in the crypto world, was trading at $0.2280 on Tuesday, up 75% from its lows in April. Technical Analysis Indicates Dogecoin Price Surge The daily chart shows that DOGE may be approaching a bullish breakout. It is forming a bullish flag pattern, characterized by a vertical price increase followed by a rectangular consolidation. This setup is usually associated with a continuation of the bullish trend. Dogecoin is also about to form a small golden cross pattern as the divergence between the 50-day and 100-day exponential moving averages reverses. Together, these patterns indicate a strong breakout potential when a resolved flag forms. If that happens, the next important resistance level to watch is $0.4815, the highest point in November 2023. This level represents a 110% increase from the current price. However, a drop below the psychological support level of $0.20 would invalidate the bullish outlook.

Dogecoin Has a Positive Funding Rate Another bullish catalyst is the continuous positive funding rate of DOGE. According to CoinGlass, the eight-hour funding rate has remained positive since March 31 and continues to rise. In the perpetual futures market, a positive funding rate occurs when long position holders pay short sellers, which is often a sign that market sentiment expects prices to rise.

DOGE Whale Accumulation Additional data shows that holders of large amounts of DOGE are accumulating DOGE, a sign of increasing confidence in the next bullish wave. According to Santiment, addresses holding between 100 million and 1 billion DOGE currently control over 26.46 billion tokens, the highest level since December 2023. Their holdings have increased from 23 billion tokens in January.

Supporting this trend, data shows that the outflow of funds from exchanges has been continuous since November 2023. Dogecoin has recorded over 695 million dollars in outflows since April 1, indicating that investors are transferring funds from exchanges to self-custody, often seen as a long-term bullish signal.