Dogecoin price shows a pullback within a narrowing range on the 4-hour chart after hitting a high of $0.25 on May 11 as the bulls’ strength lessens.

The meme coin is forming lower highs, leading to the formation of a descending trendline, but strong support around the $0.2183 price point has created a triangle pattern.

This is part of a broader bull flag formation that began with a 53% surge in DOGE last week as it pulled back from the $0.16 zone to reach highs of $0.25.

In the present analysis, the price is forming a bullish engulfing candle at the baseline of the flag, with a 3% gain pushing it closer to the apex of the flag. This increases the likelihood of a bullish breakout.

As the recent slowdown in price action pushed the Relative Strength Index (RSI) below the midline, a surge in momentum has brought the RSI back to the center, improving the chances of a bullish resolution.

Meanwhile, the MACD and signal lines are nearing a positive crossover in negative territory, supported by a decline in bearish histogram bars.

A potential breakout could propel DOGE’s price upward by 53%, targeting the $0.3543 level. However, a breakdown below $0.2183 would invalidate the bull flag pattern, with the price at risk of retesting the $0.20 zone.

Analyst Highlights Whale Accumulation and Network Growth

Furthermore, there has been an expansion in Dogecoin’s network and increased interest from whales in recent months.

According to a recent analysis by crypto analyst Ali Martinez, whales have accumulated more than 1 billion DOGE in the past month, bringing their total holdings to 25.97 billion DOGE.

This significant accumulation by large investors speaks volumes about their growing confidence in Dogecoin’s potential for future gains.

Network activity has also surged, with transaction volume nearing $549 million and daily active addresses reaching 69.2k.

Together, these metrics suggest a strong underlying trend that could facilitate a successful bull flag breakout and a continuation of Dogecoin’s rally.

#Dogecoin $DOGE is seeing a rise in active addresses, transaction volume, and whale activity. All bullish signals that could support further upside! pic.twitter.com/pRHObYo60J

— Ali (@ali_charts) May 16, 2025