With trading volume doubling this week to over $1.15 billion, Dogecoin continues to solidify its status as the hottest meme coin among traders, fueling increasingly optimistic price predictions.
This activity has made Dogecoin a hot topic for 'most worth buying cryptocurrency', driving an 8% increase in Thursday morning trading.
Amid a tough yet uncertain Federal Open Market Committee meeting and anticipated support from a U.S.-UK trade agreement, Dogecoin (DOGE) finds itself in a fertile growth environment as market headwinds begin to dissipate.
The derivatives market indicates a short squeeze.
Traders seem to be preparing for a significant price increase in DOGE, with Coinalyze data showing a daily long to short ratio of 2.27—70% of traders are betting on price increases.
The Dogecoin Fear and Greed Index is at 57 – Greed pic.twitter.com/pSsqzxnoe2
— Doge Fear and Greed Index (@DogecoinFear) May 8, 2025
The financing rate once dropped into negative territory but has now returned to neutral and is expected to turn positive.
This dynamic suggests that investor confidence in the price increase of Dogecoin is growing. If momentum continues, these shorts may be forced to cover, pushing the price higher.
Dogecoin Price Analysis: Can Dogecoin reach $1 in May?
This new bullish sentiment could push Dogecoin towards the upper resistance of the descending channel, which has defined Dogecoin's downward trend for months.
DOGE/USDT weekly price chart, descending channel pattern. Source: TradingView / Binance.
This week's surge may be the first phase of a rise to $0.23, thanks to the rebound from a long-term support trend line that bottomed out in mid-2024.
Momentum indicators further support this outlook.
The MACD is on track for a golden cross, approaching a crossover with the signal line—typically indicating a long-term trend reversal in such high time frames.
More importantly, the Relative Strength Index (RSI) is also trending towards neutral after spending some time in the bearish zone, indicating that buying pressure is increasing.
If this momentum continues, a breakout could trigger a push towards $0.44, marking a potential increase of 135% from current levels.
However, the possibility of driving the price of Dogecoin to $1 in the short term seems unlikely, especially in light of economic concerns related to U.S. trade relations casting a shadow over risk assets.
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