Dogecoin (CRYPTO: DOGE) had soared nearly 5% in the past 24 hours to trade around $0.18. The memecoin’s recent surge had added over $2.2 billion to its market capitalization in just two days, now sitting at $26.88 billion.

The rally came amid the broader crypto market uplift following the US Federal Reserve’s decision to keep interest rates unchanged.

Analysts on X (formerly Twitter) had noted that DOGE witnessed a 114% climb from peak to peak in its last two major moves. With its local high sitting at $0.46 back in December 2024, some bulls now speculated a potential 500% breakout that could send the token to $1.

What To Know: Dogecoin’s popularity has recently seen a rise in its popularity due to DOGE ETF filings by asset managers such as 21Shares and Osprey Funds.

On the daily chart, Dogecoin appears to have formed a falling wedge pattern since early February. The breakout seems to be occurring near $0.18, and given that the wedge’s widest point spans the $0.35 to $0.40 range, this could project a target between $0.53 and $0.58.

The MACD on the 4-hour chart supports the bullish case. It has just flipped positive, with the MACD line crossing above the signal line. A clear uptick in histogram bars further confirms the bullish bias.

[image: DOGE price chart with MACD | Source: TradingView]

Meanwhile, the RSI currently sits around 62, approaching overbought territory. While this reflects strong buying pressure, short-term traders should be cautious, as overheated rallies often lead to corrections.

[image: DOGE price chart with RSI and Bollinger Bands | Source: TradingView]

Bollinger Bands show DOGE price breaking above the upper band, suggesting potential overextension. If the price manages to sustain above the band with increasing volume, it could signal strength. However, a re-entry into the bands might result in a short-term retracement.

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Popular crypto analyst Ali Martinez recently noted a trendline on the DOGE weekly price chart since November 2023. He predicts a potential rebound to $0.30, given the meme coin dips to $0.14.

"This trendline has been supporting #Dogecoin $DOGE since October 2024. A dip to $0.14 could present a buying opportunity ahead of a potential rebound to $0.30."

Join me in this trade by signing up to @coinexcom using my referral link: https://t.co/73n8mW9Y5p

— Ali (@ali_charts) May 7, 2025

Traders could see some resistance around $0.20, followed by $0.23 and then the December high at $0.46.