Dogecoin (DOGE) Explosive 26% Three-Day Rally is Drawing Renewed Attention from Traders

Dogecoin's DOGE/USD explosive 26% three-day rally is drawing renewed attention from traders, with technical signals and whale movements hinting at the beginning of a much larger bullish run, according to several reports.

What Happened: Prominent analyst Kevin on Thursday shared technical analysis in his exclusive Patreon group, flagging a potential inverse head-and-shoulders pattern forming on the one to three-day DOGE chart, anchored at a key support level — an area of strong demand that stalled the candle's decline.

The 3-day MACD is showing early bullish momentum, however it hasn't yet crossed the zero line, a classic signal that the move is in its infancy, the analyst added.

Further confirmation may come from the 2-week Stochastic RSI, which is oversold and poised for a bullish cross above 20 cents, historically a powerful crypto buy signal.

"Macro alignment is still important, but the structure shows strong breakout potential," Kevin stated.

Trader Tardigrade echoed the sentiment, pointing out that Dogecoin's 30% gain in under three days follows previous similar rallies of 24% and 26% over 5–6 days, calling this phase the start of a parabolic stage.

"Dogecoin pump is accelerating $DOGE jumps over 30% in under 3 days. Previously, it saw gains of 24% and 26% in 5-6 days. It seems to be entering a parabolic stage," the trader shared on X.

Dogecoin pump is accelerating 🔥

$DOGE jumps over 30% in under 3 days 🚀

Previously, it saw gains of 24% and 26% in 5-6 days.

It seems to be entering a parabolic stage. pic.twitter.com/IlopaV5TvA

— Tardigrade (@tardigrade_nomad) May 11, 2024

Why It Matters: In an X post on May 9, Whale Alert data shows around 793.09 million DOGE, worth $153.2 million, being transferred from an unknown wallet to another unknown wallet at 12:47 p.m. ET.

In another post on May 8, around 807.4 million DOGE, valued at $148.9 million, was transferred between two unknown wallets at 10:38 p.m. ET.

These movements between unknown wallets suggest institutional or whale repositioning, often preceding major price volatility.

CoinGlass data shows DOGE derivatives trading volume expanded by 118.95%, while open interest spiked 18% in a single day.

Short liquidations as of May 8 spiked to $13.3 million, the highest since Feb. 3.

In the past 24 hours, DOGE liquidations stood at $20.5 million, with $14.3 million in short liquidations as traders were forced to close their positions with sudden price spikes.

A recent report by TokenInsight highlighted a significant surge in Dogecoin's price over the past month, attributing the rally to increased retail investor interest and heightened activity in the cryptocurrency market.

Moreover, large-scale institutional investors, like pension funds and university endowments, are becoming increasingly interested in cryptocurrencies, potentially setting the stage for a broader and more substantial market participation.

Prediction markets are also catching on, with Polymarket bettors now giving Dogecoin an 80% chance of being significantly up by May 2025, a sharp rise from just 28% on May 5.