Dogecoin (DOGE) price set for 55% rally if this trend keeps up

Dogecoin (DOGE) has seen an impressive 18% price rally over the past three days, currently outperforming all other top 30 cryptocurrencies by market capitalization over the past week. This marks DOGE's highest weekly returns of 2025, a level not seen since the final week of 2024.

Dogecoin weekly chart. Source: Cointelegraph/TradingView

A Significant Concentration of DOGE Supply at $0.20

Glassnode's on-chain data reveals that 7% of DOGE's supply is concentrated at the $0.20 price point, according to its unrealized price distribution (URPD). URPD reflects the price at which coins were last moved, helping identify potential support and resistance levels.

Dogecoin URPD data by Glassnode. Source: X.com

This concentration at $0.20 suggests it could act as a resistance level. However, Glassnode also notes that:

"If $0.20 is breached, there's little Dogecoin supply until $0.31 – the next major URPD cluster. This gap increases the likelihood of a significant price jump, as there's minimal resistance in between. Increased trading volume accompanying a breakout would be a key indicator to watch."

A breakout above $0.20 towards $0.31 could represent a substantial 55% surge, potentially establishing a bullish market structure on the higher time frame (HTF) chart. Beyond $0.20, the next resistance lies between $0.32 and $0.41, where 3- to 6-month HODL waves are concentrated (representing investor purchases from January). This could also serve as a sell-off point for traders aiming to break even.

Related: Bitcoin price has a 75% chance of hitting new highs in 2025 — Analyst

Dogecoin Breaks Through Bearish Trendline

On March 24th, House of Doge announced "The Official Dogecoin Reserve," initiating a purchase of 10 million DOGE tokens. This news fueled the current rally and boosted positive sentiment within the Dogecoin community.

House of Doge, the Dogecoin Foundation's corporate arm, stated in a press release:

"With a strategic reserve, House of Doge is building the foundation for a payments ecosystem that ensures liquidity, stability, and reliability."

It's important to note that these tokens haven't yet been transferred to their holding account. House of Doge will publish the reserve address on their website once the transaction is complete, maintaining transparency.

Trader Tardigrade highlighted Dogecoin's recent break above a three-month descending trendline established during 2025.

Dogecoin analysis by Trader Tardigrade. Source: X.com

This suggests potential short-term bullish implications for DOGE, indicating a possible relief rally in the coming days.

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Disclaimer: This article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct thorough research before making any choices.