Dogecoin Forms Base Near $0.1703 as Analysts Eye Breakout to $0.2600 and Possibly $5

Dogecoin is currently establishing a base around $0.1703, with analysts closely monitoring for a potential breakout towards $0.2600 and beyond. Data indicating significant exchange outflows, totaling $658 million since May, suggests increasing confidence among Dogecoin holders and a reduction in market supply. This, coupled with favorable technical patterns and robust derivatives interest, supports a long-term price target of $5 for DOGE.

The cryptocurrency is trading near the $0.1703 mark, where technical indicators and market data point to the formation of a stable foundation. With funding rates consistently positive and investor accumulation ongoing, attention is shifting towards the possibility of a longer-term price appreciation, potentially reaching $5. Continued exchange outflows and bullish technical formations reinforce this optimistic outlook.

Technical Setup Supports Short-Term Strength

Data from CoinGlass reveals that over $658 million worth of Dogecoin has been withdrawn from exchanges since the beginning of May. These substantial outflows reduce the readily available supply and imply growing confidence within the Dogecoin community. The circulating supply of Dogecoin remains at 149.74 billion, with no established maximum limit.

The Moving Average Convergence Divergence (MACD) indicator currently displays a mild bearish pressure, although the separation between the signal lines is minimal. The Relative Strength Index (RSI) stands at 42.59, indicating a neutral market condition. Should the price break above $0.1720, analysts anticipate a move towards $0.2600. Solid support is established at $0.1700, with a secondary support level at $0.1535.

Source: CoinMarketCap

Trading volume over the past 24 hours reached $901.8 million, reflecting a decrease of 11.84%. The volume-to-market cap ratio is 3.55%, indicating moderate trading activity relative to Dogecoin's $25.5 billion valuation. The 4-hour chart illustrates a tight consolidation pattern between $0.1700 and $0.1720, confirming short-term stability.

Structure and Sentiment Align With $5 Target

According to observations shared by trader Tardigrade on X, Dogecoin appears to be forming an ascending triangle pattern on lower time frames. This pattern is typically observed during price consolidation periods preceding a continuation of the prevailing trend. This pattern lends further support to the broader bullish structure that has been in place since early 2024.

Source: TraderTardigrade(X)

Open interest in Dogecoin futures has risen to $1.78 billion, while funding rates have remained positive since June 13. These metrics demonstrate considerable interest from derivatives traders who are anticipating upward price movement. Despite a recent decrease in options volume, open interest has increased by 3.16% to $1.45 million.

If the current bullish structure persists and accumulation continues, Dogecoin could potentially target higher price levels beyond $1.25. Certain long-range projections, based on the prevailing trend strength and favorable technical alignment, now extend to a potential target of $5 within the current market cycle.