After several months of consolidation, Dogecoin (DOGE) is once again attracting attention. And this time, the signals seem more convincing than ever.
In 2025, DOGE has recorded a slow but steady recovery, with the price currently hovering around $0.199, just below the critical breakout zone.
The price volatility of this memecoin is currently supported by increasing trading volume, heightened wallet activity, and positive technical signals that analysts believe could lead to a new growth phase.
Let's analyze the story behind DOGE's surge with Bitcoin Magazine.
Trading volume surged to $1 billion.
The most direct cause is the sudden spike in trading activity. According to analyst GA Trading, Dogecoin recorded over $1 billion in trading volume in the last 24 hours.
Strong trading volume often accompanies significant breakout events, and DOGE's current movement out of the descending triangle pattern aligns with that argument. Note that the breakout occurs within the 4-hour timeframe.
This trend follows a quiet recovery throughout 2025. After bottoming out during the correction in June, DOGE's price has gradually recovered to around $0.18 – $0.19.
This upward momentum may not have garnered much attention, but now, DOGE may finally be ready to break out.
The surge in the number of holders reinforces confidence.
Another underrated factor is that the number of holders of this memecoin surged in May during a one-day growth event.
Although it has cooled off a bit since then, according to data from Santiment, the number of wallets holding DOGE remains at its highest level in 2025.
The increasing holder base indicates confidence, not just speculation. Even when the price consolidated in June, wallets did not sell off.
This long-term holding behavior strengthens the foundation for Dogecoin, especially when combined with a significant increase in short-term trading volume.
The sudden spike in the number of holders in a single day in May may have positively impacted long-term players.
RSI indicates hidden bullish divergence.
Digging deeper, the Relative Strength Index (RSI) is signaling growth. RSI measures price momentum; with levels above 70 considered overbought, and any level below 30 considered oversold.
Currently, while DOGE's price has made lower highs, the RSI has made higher highs. This is known as hidden bullish divergence, a signal indicating that momentum is building even if the price has not broken out. The RSI is currently in the 65-68 range; it hasn't entered the overbought zone, indicating there is still room for growth.
This divergence suggests that the bulls are preparing to push Dogecoin higher if the price surpasses the next resistance level.
RSI is a momentum indicator that tracks the strength of recent price changes to identify overbought or oversold conditions in the market.
Fibonacci levels indicate clear breakout targets.
The price chart shows a Fibonacci setup based on typical trends. The Fibonacci levels are drawn from the reversal low in April to the peak in May and then to the retracement in June.
This setup gives us 3 key levels to watch:
First resistance level: $0.20725, the immediate breakout zone.
Second target: $0.22983, matching the previous resistance level from early May.
Third target: $0.25250, an extension point if the upward momentum is maintained.
Fibonacci levels are tools used to predict potential resistance and support zones based on past price movements.
Since DOGE has very few resistance levels between these prices, breakouts tend to be strong, while declines can occur quickly.
Interestingly, the chart also suggests the potential formation of a cup pattern, a bullish setup, but the handle has yet to form. Until this occurs, a safer option is to focus on the breakout of the triangle pattern and the Fibonacci zones.
DOGE is showing real momentum. The combination of $1 billion trading volume, a high number of holders, and RSI divergence is creating a clear breakout structure.
This memecoin has surpassed key trend lines on the 4-hour chart, with MA-50 and MA-200 preparing to form a bullish crossover.