Dogecoin’s Bullish Breakout: Is a Major Surge Imminent?

Dogecoin retests bull market support, hinting at a 15-20% surge post-DTL breakout.
Shakeout strategy suggests a major upward move after testing investor resolve.
S/R flip signals bullish momentum if volume and indicators hold strong.

The cryptocurrency community is abuzz with anticipation regarding Dogecoin ($DOGE) following a detailed technical analysis shared by @StonkChris on X.

The analysis highlights a crucial retest of the bull market support band, coinciding with a breakout from a descending trend line (DTL), a pattern frequently associated with significant price movements. Research from the Journal of Financial Markets (2023) suggests that DTL breakouts in volatile assets like cryptocurrencies can precede price surges of 15-20%, fueling speculation of a potential rally.

It's actually wild that $DOGE perfectly retested the bull market support band which coincides with the DTL breakout S/R flip.This might have just been the ultimate shakeout before the real fun up. pic.twitter.com/TJugQjkqJT— Chris (@StonkChris) August 3, 2025

The analysis proposes this could be a classic “shakeout,” where a temporary price dip gauges investor confidence before initiating a substantial upward movement. This aligns with historical crypto cycles since 2017, especially during periods of heightened liquidity linked to M2 money supply growth, as highlighted in a recent 2025 Sarson Funds report. The chart shared by @StonkChris displays a support/resistance (S/R) flip, a psychological shift in market sentiment that behavioral finance studies (e.g., Review of Financial Studies, 2021) correlate with bullish momentum when bolstered by strong volume and momentum indicators. The current chart’s upward trend following the retest reinforces this possibility.

Community reactions on X are varied. Some users, like @Josh03763042882, agree that this could be the “ultimate shakeout” before a significant run, while others question the timing, citing past volatility. The current $DOGE price of approximately $0.20159 (based on TradingView data) has increased by 2.58% in the last 24 hours, with a market capitalization of $30.31 billion, lending credence to the bullish perspective. However, traders are advised to look for confirmation signals, such as sustained volume or oscillator recoveries (e.g., RSI below 40 turning upward), before making any commitments.

Source: Tradingview

As the market evolves, this moment could represent a pivotal juncture for $DOGE. Investors are encouraged to closely monitor real-time data and sentiment shifts, particularly with potential profit-taking on the horizon by October if M2 trends weaken.
Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. Readers should conduct their own research before making any financial decisions.