Dogecoin (DOGE) has seen a rapid price surge recently, gaining nearly 40% in a week as it rose from the $0.16 level to hit a local high above $0.25. While this rally has brought renewed interest in the meme coin sector, some market analysts are highlighting the technical structure that has emerged since late 2023.

As the price action from May 7 onward shows, there has been sustained buying activity with minimal retracement, which may indicate continued interest from investors.

However, more importantly, there has been a shift in the long-term price formation of Dogecoin, which could be suggesting a macro reversal in progress.

Long-Term Reversal Pattern Could Take DOGE Above $1

For instance, a detailed DOGE/USDT analysis by Javon Marks highlighted Dogecoin's breakout above multi-year descending resistance, which began after the coin peaked at nearly $0.70. Notably, this breakout, which occurred in late 2023, marked the end of a prolonged series of lower highs and lower lows.

Since then, Dogecoin has displayed a consistent pattern of higher highs and higher lows, a key indicator of strengthening bullish momentum. The most recent retracement found support around the $0.16 area, forming a new higher low and reinforcing the emerging bullish structure.

Following this development, Marks projects a potential high at $0.6533, representing a 162% increase from current price levels.

As the price chart shows, the next resistance is at $0.548, which is the 1.272 Fibonacci Extension level from the March 2023 low to the May 2023 high. A decisive breakout through this zone could also open the path toward additional gains, potentially extending beyond the coveted $1 level and surging toward $1.25.

Ascending Support Line Reinforces Broader Bullish Trend

In a separate DOGE/USDT chart analysis, analyst Ali Martinez identified a long-term ascending support trendline. This line has remained intact for over seven months, beginning in October 2023 and extending through May 2025.

It has served as a foundation for the broader bullish pattern. Most recently, the price action tested this support in April 2025 and rebounded, maintaining the asset's upward trajectory and confirming the trendline's significance.

Currently, Dogecoin has moved past the 0.382 Fibonacci retracement level and is approaching a near-term technical target of $0.27, which sits just above the 0.5 Fibonacci mark.

Fibonnaci levels are used by technical traders to identify price targets and optimal exit points for trades.

Open Interest and Whale Accumulation

As of May 11, futures market data from Binance shows that 75% of Dogecoin positions are long, with only 24.99% short, resulting in a long/short ratio of 3.0.

This metric indicates that for every trader expecting a price drop, three anticipate a continued rise. While this demonstrates high levels of bullish sentiment, it also introduces potential volatility, especially if the market moves counter to the dominant positioning.

In addition to futures positioning, on-chain data highlights increased whale activity. Since the beginning of 2024, blockchain data from Glassnode shows that entities holding 10 million DOGE or more have been accumulating. During this period, they have added over 500 million DOGE to their wallets.

Moreover, an analysis by blockchain analytics firm Chainalysis in April 2024 revealed that a small group of cryptocurrency traders, known as "whales," are largely responsible for the recent surge in Dogecoin.