Dogecoin (DOGE) price is approaching a strong breakout point as a bullish flag pattern forms, technical analysis suggests.

The biggest meme coin was trading at $0.2280 on Tuesday, having risen by 75% from its lowest level in April.

Dogecoin Is Forming A Bullish Flag Pattern

On the daily chart, DOGE is forming a bullish flag pattern, characterized by a vertical rally followed by a consolidating rectangle, typically setting up continuation to the upside.

Dogecoin is also about to form a mini golden cross pattern, as the spread between the 50-day and 100-day Exponential Moving Averages flips each other.

Together, these patterns suggest that the potential exists for an aggressive breakout once the flag formation resolves.

If that happens, the next key resistance to watch is $0.4815, the November 2023 high. This level represents a 110% increase from current prices. However, a drop below the psychological support at $0.20 would invalidate the bullish outlook.

Dogecoin Has A Positive Funding Rate

Another bullish catalyst is DOGE’s consistently positive funding rate.

According to CoinGlass, the eight-hour funding rate has remained positive since March 31 and continues to climb.

In perpetual futures markets, a positive funding rate occurs when long position holders pay fees to short sellers, typically a sign that market sentiment expects prices to rise.

DOGE Whales Are Accumulating

Further analysis shows that large holders are accumulating DOGE, indicating confidence in a continued rally.

According to Santiment, addresses holding between 100 million and 1 billion DOGE now control over 26.46 billion tokens, the highest level since December 2023. Their holdings have grown from 23 billion tokens in January.

"Dogecoin has seen a pretty staggering decrease in balances on exchanges over the last year. Considering that exchange balances peaked in early October at 19.97 billion $DOGE, they've now dropped to 3.78 billion. Sticking with the theme of lows not seen since early December 2023," Santiment noted.

Supporting this trend, data shows sustained exchange outflows since November 2023. Dogecoin has recorded over $695 million in outflows since April 1, indicating that investors are moving coins from exchanges to self-custody, typically viewed as a long-term bullish signal.