Dogecoin price is poised for a potential breakout after forming a rare diamond bottom pattern on the daily chart. According to technical analyst Trader Tardigrade, the structure shows a bullish reversal setup that could send the DOGE price over 105% higher to $0.35.

This bullish forecast comes despite Dogecoin price falling 1.5% in the last day and 3% in the last week. However, in the last 30 days, bulls have had the upper hand with DOGE price soaring 15%.

Dogecoin Price Diamond Bottom Pattern Hints at Rally

Trader Tardigrade has spotted a diamond bottom pattern on the daily DOGE/USD chart. This pattern usually signals a bullish reversal when it forms after a sustained downtrend. According to the analysis, the breakout level is around $0.165-$0.17.

This projection puts the DOGE price target between $0.255 and $0.35. The chart also shows a dotted green arrow pointing toward the $0.35 level, suggesting a more optimistic scenario for a breakout extension.

This projection puts the DOGE price target between $0.255 and $0.35. The chart also shows a dotted green arrow pointing toward the $0.35 level, suggesting a more optimistic scenario for a breakout extension.

Both traders noted that maintaining the $0.165-$0.167 zone is crucial for bullish momentum to continue.

The Price Momentum Oscillator (PMO) also shows a bullish crossover, which might support further gains if buying volume increases. These indicators support the case for a possible rally if current support holds.

DOGE ETF Approval May Further Propel Dogecoin Price

DOGE ETF speculation is heating up as several asset managers are applying for approval. Among them, Bitwise, 21Shares, Grayscale, and REX Shares are seeking clearance from the U.S. Securities and Exchange Commission (SEC) to launch Dogecoin ETFs. According to Polymarket, DOGE ETF approval had a 25% increase in the last day, and analysts are giving a 63% chance that it might be approved by the end of 2025.

According to a CoinGape report, if Dogecoin receives 30% to 50% of Bitcoin ETF inflows, the price could surge to between $0.34 and $0.50. This scenario is based on an estimated $12 to $20 billion entering the DOGE markets. The forecast also projects that DOGE’s total market capitalization could more than double under this model.

The approval would likely pull more institutional investors to its side hence increasing the capital flow further. This potential capital flow corresponds to the $0.35 level depicted in the technical indication. According to analysts, the approval news can be considered as a potential trigger for the price rally and take DOGE past the $0.255 barrier.

According to the analysis by IntoTheBlock, the average holding time of transacted DOGE coins has increased by over 526% in the last 90 days. This behavior is similar to the trend seen before Dogecoin’s 2021 bull run. In just the past seven days, holding time has risen by four months.

This shift from short-term speculation to long-term holding reduces sell pressure and suggests that investors anticipate the DOGE price to rise soon. If this trend continues, it could support a more stable base for further growth.

Long-term holders now dominate the transaction volume, which often occurs before strong upward price moves. Less market supply, combined with growing demand, is a positive sign.