Dogecoin price has been dancing to its old tune again. After sliding to a low of $0.1325 earlier this month, the meme favorite is already staging a strong comeback, crossing the $0.18 mark. If past patterns are any guide, this recovery could be the prelude to another powerful rally, setting the crypto community abuzz once more.

Such momentum comes as Dogecoin records a 17% rise over the past week, lifting its market capitalization to around $27 billion.

Chart Shows Dogecoin Near Major Breakout Zone

According to market analyst Trader Tardigrade, Dogecoin (DOGE) could soon see a massive bull run. The analyst noted that the meme coin has bottomed out its cycle, repeating moves during previous major waves.

Per Tardigrade’s shared chart, Dogecoin shows three key ‘Round Bottom’ formations, followed by price appreciations. In past instances, the token exploded substantially after breaking towards similar rounded bottoms in 2017 and 2021. The current pattern mirrors these historical setups, which at this point suggests a potential bullish breakout.

Dogecoin Price Chart (Source: X Post)

The chart shows that Dogecoin’s price went from around $0.0004 to above $0.018 after the 2017 cycle bottom and from around $0.0024 to over $0.74 during the 2021 breakout.

According to the analyst’s projection, the newly formed round bottom places Dogecoin’s key structural support in the $0.12 to $0.17 range. This positioning is consistent with historical price movements that have typically led to explosive price action.

“This positioning is noteworthy as it has historically been a point of significant interest, often resulting in substantial price appreciation. A strong uptrend is coming with this recurring structure. Could see another major rally for Dogecoin this cycle, based on this recurring structure,” said Tardigrade.

Dogecoin Funding Rate Stays Positive as Bulls Dominate

Market participants have shown growing confidence as Dogecoin (DOGE) OI-weighted funding rates have remained positive. With Dogecoin trading around $0.18 at press time, the token’s OI-weighted funding rate reads 0.0042%.

This places the token in the green zone, indicating that long position holders are willing to pay a premium to short sellers to keep their positions open. Since mid-March, Dogecoin’s funding rate has consistently stayed above the neutral line, suggesting that bullish sentiment dominates the derivatives market.

DOGE OI-Weighted Funding Rate (Source: CoinGlass)

The frequent positive funding suggests that traders expect prices to trend higher and are willing to incur additional costs to maintain their long exposure.

However, it’s worth noting that in the past two months of historical observation, Dogecoin briefly dipped into negative territory. Overall, though, its funding has been supported by bullish positioning, a testament to the sustained market confidence in the asset’s potential for upward movement in the green zone.