Dogecoin’s Monthly Chart Resembles the 2020 Setup Before Its Breakout Rally

Dogecoin (DOGE) is exhibiting intriguing technical patterns, with its current market structure drawing comparisons to the setup observed prior to the significant rally in 2020. The interplay of price action, volume trends, and derivatives data suggests that DOGE might be gearing up for another potential upward movement. At the time of this analysis, Dogecoin was trading around $0.2014.

The monthly chart structure bears a resemblance to the period leading up to the 2021 rally. According to insights from GalaxyBTC, Dogecoin broke free from a prolonged downtrend that spanned from 2018 to 2020, preceding a substantial rally in 2021. A similar pattern appears to be forming between 2021 and 2025, characterized by a descending channel followed by a breakout and a higher low.

This pattern of higher highs and higher lows indicates sustained buying pressure since 2023. The most recent monthly candle reflects considerable momentum, with the price holding above the $0.19 support zone despite a 7.85% pullback in the preceding session. Fibonacci retracement analysis highlights the $0.195–$0.197 range as a crucial support level.

TradingView data reveals that Dogecoin appreciated from $0.190 to $0.200 on July 16, marking a 5.05% increase. Volume surged to 464.28 million, exceeding the 24-hour average of 287.95 million, potentially indicating heightened institutional interest.

Derivatives metrics further reinforce the bullish outlook. Data from Coinglass shows increasing interest in Dogecoin derivatives, with volume reaching $6.61B and open interest climbing 8.59% to $2.84B. Options open interest also saw a significant increase of 20.38% to $2.96M. Traders on major exchanges like Binance and OKX are heavily skewed towards long positions, with long/short ratios exceeding 2.5.

Binance's top trader long/short ratio reached 3.2458 by position, underscoring aggressive bullish sentiment. Funding rates remain positive, and the Relative Strength Index (RSI) stands at 58, indicating momentum without reaching overbought territory.

An observation by TATrader_Alan noted that DOGE retested its support channel on July 15, maintaining its structure on the hourly chart. Should volume continue to rise and DOGE successfully reclaim the $0.21 level, traders may anticipate further gains towards previous highs.