Dogecoin (DOGE) price has rallied this month, mirroring the performance of Bitcoin and most altcoins.

The biggest meme coin rose to $0.2357 on Wednesday, up by almost 80% from its lowest point in April. This recovery has led to speculation that it may jump to $1 during this cycle.

Dogecoin has a few catalysts that may support its upward trend. The most notable is the potential approval of DOGE ETFs filed by companies like Bitwise, Grayscale, 21Shares, and Rex Shares.

Polymarket odds of a spot ETF approval have risen to 63%, up from this month’s low of 60%. These odds have increased because Dogecoin is a proof-of-work coin like Bitcoin (BTC), meaning the SEC may not consider it a security.

Another potential catalyst for Dogecoin is the continued rise in volume in both the spot and futures markets.

CoinGecko data shows that 24-hour trading volume jumped to $3.14 billion, higher than Shiba Inu’s (SHIB) $3.17 billion and Pepe’s (PEPE) $2.3 billion.

CoinGlass data shows that Dogecoin futures open interest stood at $2.92 billion on Wednesday, a significant increase from last month’s low of less than $1 billion. The interest has remained above $2 billion since May 9.

Futures open interest is an important metric because it reflects the number of active contracts yet to be settled. A higher open interest indicates growing demand and liquidity.

Dogecoin may also benefit from the expected surge in Bitcoin price, as the two assets have a close correlation. Analysts at Standard Chartered, for example, have set a target of $200,000 for Bitcoin.

Dogecoin price technical analysis

The three-day chart shows that Dogecoin has gradually formed a large accumulation cylinder since October 2023. This structure is made up of two ascending and diverging trendlines, also known as a rising wedge or megaphone pattern.

The accumulation cylinder follows seven key points, which are illustrated in the chart above. A bullish breakout typically occurs at the seventh point in this formation.

If the pattern holds, DOGE could rally toward the psychological level of $1. To do so, it must first break above the sixth level at $0.4877 and then surpass its all-time high of $0.7517 to confirm the bullish outlook.

One caveat to this Dogecoin price prediction is that it’s based on a three-day chart, suggesting that a 325% rally to $1 may take several months, or even over a year, to play out. For example, the move from point 6 to 7 took more than five months to complete.