Does This Mean Dogecoin Price Will Rally To $0.31 Soon?

Dogecoin price is showing early signs of a potential rally as a well-defined bull pennant appears on the 1-hour trading chart. This DOGE price trend has come amid Bitcoin’s recent rally to an all-time high of $111,000, as traders shift attention toward alternative assets with higher volatility.

Dogecoin Price’s Bull Pennant Formation Suggests Bullish Run Ahead

Dogecoin price is forming a classic bull pennant on the 1-hour chart, according to crypto analyst Ali Charts. Often, this pattern follows a sharp increase in price and then a consolidation in the form of a converging range. At the time of writing, Dogecoin is currently priced at $0.2296, well below the 0.786 retrace level at $0.23544, which is currently acting as near-term resistance.

Descending resistance and ascending support come together and converge to an apex and form a pennant. Since May 10, this structure has been developing. Within the pennant, price movements have been gradually becoming narrower, indicating growing tension and a possible breakout.

This consolidation has also seen volume trend downwards which is consistent with how this pattern typically plays out. A confirmed breakout above the upper resistance trendline of the pennant could lead to a price target of around $0.31. This target is based on the measured move from the initial surge that created the flagpole leading into the pattern.

Dogecoin Price’s Fibonacci Levels and Breakout Points

The Dogecoin price Technical indicators show key retracement levels drawn from the swing low of $0.16416 to the high of $0.25973. These Fibonacci retracement levels are acting as critical support and resistance markers for DOGE.

Recent pullbacks have held at the 0.618 Fib at $0.21798. Currently, price is meeting resistance at the 0.786 Fib at $0.23544.

Meanwhile, the chart indicates that a breakout from this wedge is consolidating with the 0.786 Fib level. If this level ever flips into support levels, analysts say a quick rebound should move the pair back toward the previous high around $0.25973.

The next price targets are the 1.27 and 1.41 levels in Fib, which imply a surge to $0.29425 and $0.31406, respectively. If the price fails to break out and instead reverses, the key levels to watch include $0.21798 and $0.20649. These are the 0.618 and 0.5 Fib levels, and they will be crucial in maintaining the current bullish outlook.

On-Chain Metrics Show Rising Activity

According to on-chain data from Whale.io, Dogecoin’s realized profits saw a sharp rise. In the past 24 hours, profits increased by 225.58 percent, bringing them to $36.1 million. In addition, daily transaction volumes rose to $595.9 million, suggesting increased trading action across platforms.

Open interest, as per Coinglass, climbed 59.64% to $3.02 billion, while trading volume surged 62.99% to $7.68 billion. Dogecoin price’s short-term movement saw growing trader interest, evidenced by options volume jumping over 200%. Now, options open interest is $745.09 million.

These figures indicate that a number of traders are actually taking part in the Dogecoin market. Derivatives’ increase in volume is also indicative of growing expectations of further price movement. A breakout from this chart pattern will increase the momentum with more buyers coming into the market.

Dogecoin Price Historical Pattern Signals Macro-Level Accumulation

Technical analyst Trader Tardigrade shared observations on Dogecoin’s 6-month chart. According to the analyst, Dogecoin price is currently completing a third-round bottom formation. Similar patterns appeared before major rallies in 2017 and 2021.

The first pattern formed from 2014 to 2017 and ended with a sharp rally. A second similar phase between 2018 and 2020 preceded the 2021 surge when DOGE reached above $0.6. The third-round structure appears to be forming from 2022 through 2025.

“This is the third cup forming in the long-term DOGE chart. The previous two led to powerful rallies,” Tardigrade posted on X. The pattern may represent another long-term accumulation phase. If it plays out as before, the projected move could take Dogecoin toward the $6 mark.

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