Dogecoin (DOGE) is once again capturing significant attention in the cryptocurrency market. The price surged by 6% in a single trading session, accompanied by a remarkable 70% increase in 24-hour spot trading volume, reaching $3.34 billion. Additionally, derivatives volume saw a 67% jump, totaling $7.85 billion.
This wave of optimism was largely fueled by Bitcoin achieving a new all-time high, which boosted overall market sentiment. Large-scale investor accumulation was evident, highlighted by notable whale activity that saw 250 million DOGE tokens, valued at $57.6 million, transferred from Robinhood to an unknown wallet.
Many analysts are forecasting substantial growth for this popular cryptocurrency, which is often endorsed by Elon Musk. As the eighth-largest crypto by market capitalization, its increasing acceptance among merchants is transforming it from merely a meme into a more widely used digital asset. Experts are now setting short-term price targets around $0.31, citing a strong bullish formation.
Is Dogecoin Price Headed Toward $0.31?
The recent upward movement of DOGE, influenced by Bitcoin's rally, has drawn commentary from numerous market specialists. A well-known cryptocurrency analyst, Ali Martinez, identified a breakout from a bull pennant pattern on an hourly chart. This technical formation typically signals the continuation of an uptrend following a period of consolidation, suggesting a potential rise to $0.31.
On the daily chart, Dogecoin has demonstrated impressive strength throughout the second quarter, climbing over 80% from a low of $0.130 to $0.240. This growth is attributed to a combination of internal developments, such as progress on the DOGEOS App, and external factors like easing geopolitical trade tensions.
The asset continues to show bullish momentum, trading firmly above the 20-day Exponential Moving Average (EMA), which indicates sustained buyer interest and upward pressure.
Applying Fibonacci retracement levels, the $0.308 to $0.31 zone—representing the 0.5 level—is a critical short-term resistance area. A successful breach could pave the way for further gains. In the longer term, overcoming the region between the 0.5 and 0.618 Fibonacci levels might even push DOGE toward $0.484 or higher.
However, if the price faces strong rejection at $0.31, a retracement toward the $0.15 demand zone is possible.
On-Chain Metrics Support Bullish Dogecoin Outlook
Key on-chain indicators provide further support for a positive price trajectory. Over the past month, the number of active addresses has surged from 775,000 to 1.8 million. This metric reflects the count of unique wallets engaging with the network, indicating renewed user activity and transaction volume.
Such growth suggests increasing adoption and utility, which often correlates with higher demand and token value. Moreover, the total number of DOGE holders has consistently risen over the last six months, climbing from nearly 7 million in January to 7.95 million—a solid indicator of expanding investor base.
Another encouraging signal is the percentage of the total supply in profit, which currently stands at 80.42%. This means that the majority of circulating DOGE was acquired at prices lower than the current market value, reducing selling pressure and supporting confidence.
Data from Santiment also shows the 30-day Market Value to Realized Value (MVRV) ratio climbing from a deeply negative -26% in March to a positive 16% in May. A positive MVRV indicates that investors who purchased DOGE in the past month are now in profit, which often encourages holding rather than selling.
These on-chain dynamics collectively paint an encouraging picture for Dogecoin's market health. For those interested in tracking these metrics in real time, you can explore more strategies for monitoring on-chain activity.
Frequently Asked Questions
Why is Dogecoin’s price rising?
Dogecoin's recent price increase is primarily due to Bitcoin's new all-time high boosting overall crypto market sentiment. Significant whale transactions and growing merchant adoption are also key contributors to its upward momentum.
What is the short-term price prediction for Dogecoin?
Many analysts are targeting the $0.31 level in the short term, based on a bullish pennant breakout pattern and strong on-chain fundamentals. This target is contingent on maintaining current market support.
What does the 30-day MVRV ratio indicate?
A positive 30-day MVRV ratio shows that investors who bought DOGE in the last month are currently at a profit. This often leads to reduced selling pressure and can be a bullish indicator for near-term price action.
How does whale activity affect Dogecoin's price?
Large transfers by whales can signal accumulation or distribution. Recent moves of substantial DOGE amounts to private wallets suggest confidence and potential upward price pressure.
Is Dogecoin still considered a meme coin?
While it originated as a meme, increasing merchant acceptance and development activity are expanding Dogecoin's use cases, making it a more versatile cryptocurrency asset.
What are the major resistance levels for DOGE?
The key resistance to watch is between $0.30 and $0.31. Breaking through this zone could open the path to higher targets, while failure might lead to a pullback toward $0.15.