3 Key Factors Fueling the Dogecoin (DOGE) Surge

The most popular meme coin, Dogecoin (CRYPTO: DOGE), could be setting the stage for a major bullish breakthrough in the coming months. As the cryptocurrency market continues to recover, three technical factors, flow, and institutional investor activity seem to be converging to fuel a significant price increase.

On the chart, Dogecoin is showing promising signs. Since its April low, DOGE has already experienced a 75% surge, reaching $0.228. On the daily chart, the price is nearing a potential bullish breakout, forming what appears to be a bullish flag. This technical pattern, characterized by a vertical rally followed by a consolidation phase, is generally associated with a continuation of the positive trend.

Moreover, DOGE is set to form a “mini golden cross”, with the reversal of the difference between the 50 and 100-day exponential moving averages. These technical patterns suggest an aggressive breakout once the flag formation is resolved, with a key resistance to watch at $0.4815. Breaking above this level would present a potential 110% upside from current levels. However, a drop below the psychological support at $0.20 would invalidate this bullish outlook.

A bearish divergence in the RSI and other indicators urge caution in the coming weeks. Indeed, Bitcoin (CRYPTO: BTC) and the crypto market have seen several weeks of uninterrupted gains. The probabilities of retracements increase daily.

Moreover, the DOGE flag could be used by smart money to “distribute” one last time before the retracement. If this bearish scenario materializes, DOGE could target its Point of Control at $0.17. This area should act as a strong support and provide a prime opportunity to jump on DOGE before its surge in 2025.

Therefore, it will be crucial to monitor DOGE between $0.25 and $0.27 if it regains these levels in the coming days.

The positive funding rate of Dogecoin is also a crucial element. In perpetual futures markets, a positive funding rate means that long position holders pay fees to short sellers. This reflects a bullish market expectation and typically fuels an upward trend.

According to CCChartData, the Dogecoin funding rate has been positive for 35 days, a testament to the sustained bullish pressure on the meme coin.

Dogecoin's Funding Rate Has Been Positive For 35 Days. Is It Finally Bottoming Out?

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Chart by CCChartData / Benzinga's analysis.