Analyst Trader Tardigrade has identified a “Double Doji” candlestick pattern on Dogecoin’s (CRYPTO: DOGE) daily chart—a less common formation that, according to Tardigrade, is capable of generating substantial market shifts.

The pattern, which occurred on May 23 and May 24, marks the second time this year. Both instances were followed by a strong upward move in Dogecoin’s price.

The essence of the doji candlestick lies in its small real body, indicating a balance between buyers and sellers. Typically, this culminates in a breakout as momentum shifts. As depicted in the chart, the double doji pattern was immediately followed by a surge in DOGE’s price, leading to a firm bullish breakout.

With the recent double doji spotted in the $0.22 to $0.23 range, anticipation builds for similar gains if past patterns return.

Highlighting a key support trendline on Dogecoin’s (CRYPTO: DOGE) 4-hour chart, Trader Tardigrade furthered the case for an upward breakout.

As the asset continues to retest this ascending support level around the $0.225 mark, a zone that has previously acted as a launchpad for price rebounds, Tardigrade pointed out that this red trendline has been a crucial base throughout several sessions.

As DOGE reaches this point, Tardigrade noted that a turnaround may occur as long as the previous support holds. The chart predicts a potential bounce to $0.25, marked by a dotted line, and the current trend is converging towards that territory.

The supportive funding rates add to the improvement and increasing sentiment around Dogecoin. According to the chart by CoinGlass, the funding rate on DOGE has remained persistently in the green zone for several days. This indicates that long position holders are consistently willing to pay a premium to shorts to maintain their positions.

As of May 26, 2025, the funding rate stands at approximately 0.0081%, with DOGE priced at $0.23. While the funding rate is high, leveraged long positions are the primary force in the market.

When long traders cover the costs to keep their positions, it’s typically an indication of great hope for rising asset prices.

Should momentum fail to slow and funding remain positive, then, thanks to its trend and the general market mood, DOGE could benefit from positive short-term gains.