Dogecoin has just completed a double bottom model with a price exceeding 0.24 USD, aiming for a potential target of 0.42 USD amid promising whale cash flow and social interest.
DOGE's price movement shows signs of initiating an early upward trend; however, the high MVRV and NVT indices warn of risks as it approaches the resistance level of 0.30 USD.
MAIN CONTENT
Dogecoin confirms the breakout of the double bottom model at the price level of 0.24 USD.
DOGE whales are increasing their accumulation, supporting short-term price momentum.
High MVRV and NVT indices indicate a warning of a downturn when approaching the resistance level of 0.30 USD.
How did Dogecoin complete the breakout of the double bottom model?
Cryptocurrency market analyst Anthony Pompliano states: "Dogecoin's double bottom model is an important reversal signal for potential upward price trends." (Pompliano, Founder of Morgan Creek Digital, 2025)
Dogecoin has formed a double bottom model over the past few months, breaking out from the neckline at 0.24 USD, opening up the opportunity to reach the target of 0.42 USD if the trend continues sustainably. At the time of compilation, DOGE is up 5.78% to 0.2525 USD, showing a clear uptrend on the technical chart.
Are Dogecoin whales triggering the next upward move?
On-chain data indicates that in the past 48 hours, Dogecoin whales have purchased up to 1.08 billion DOGE – the largest accumulation in recent months, affirming strong confidence from major investors.
"Active buying volume from whales often leads to clear price increases. The transition from a dormant accumulation state to an active one facilitates liquidity increases and pushes prices higher." – Ali Martinez, Crypto Analyst, 2025.
Ali Martinez, Cryptocurrency Analyst, 2025, TinTucBitcoin
The active accumulation by DOGE whales will create a premise to overcome key resistance levels, helping to solidify the medium-term upward trend if this cash flow continues.
An increase in the Social Dominance index may signal a revival from retail investors?
Dogecoin's Social Dominance index reaches a peak of 3.57% – the highest since Q1 2025, reflecting a surge in discussion and interest on social media platforms.
According to a report by Santiment, an increase in Social Dominance is often accompanied by revivals from retail investors and short-term price increases due to information spread effects. However, this phenomenon also brings high volatility risks as sentiment can reverse unexpectedly.
Thus, although attention on social media plays a positive role, the sustainability of Dogecoin's price still depends on the transition to actual market liquidity.
Are the MVRV and NVT indices warning of risks for Dogecoin?
The MVRV Z-score value of Dogecoin has reached 1.35, signaling an increase in the number of addresses that are in profit, leading to potential technical selling pressure when the price hits resistance levels.
The NVT index rising to 121 indicates that the market capitalization is significantly exceeding actual trading volume, posing a risk of overvaluation if the network does not develop accordingly.
"An excessively high NVT index indicates that the market may be overinflated, caution is needed during strong price increases to avoid deep corrections." – Laura Shin, Renowned Cryptocurrency Journalist, 2025.
Laura Shin, Cryptocurrency Journalist, The Defiant, 2025
The increase in these indices serves as a reminder of short-term correction risks, especially as DOGE approaches the psychological resistance level of 0.30 USD.
Can Dogecoin reach the target of 0.42 USD?
Strong upward momentum thanks to the breakout of the double bottom model, combined with accumulation from whales and social media activity, creates a solid foundation for the target of 0.42 USD in the near future.
However, high MVRV and NVT indices along with profit-taking pressure may pose obstacles. If the cash flow remains strong and selling pressure is limited, the potential for DOGE to break through to 0.42 USD is entirely feasible on the technical charts and on-chain data.
Frequently Asked Questions
1. What does the double bottom model mean for Dogecoin?
This model signals the potential reversal from the bottom, indicating that a new bullish trend is forming based on technical analysis.
2. How do Dogecoin whales affect the price?
Whales accumulating a lot of DOGE often lead to price increases due to narrowed supply and demand, while this signal also attracts more retail investors into the market.
3. What does high Social Dominance predict?
An increase in this index indicates that the DOGE theme is being widely discussed on social media, often leading to a spike in short-term growth due to FOMO effects.
4. What do the MVRV and NVT indices reflect?
MVRV measures investor profit, while NVT shows the valuation compared to actual transactions; a high index warns that prices may be overbought, so caution is needed.
5. Can the price of Dogecoin exceed 0.42 USD?
If whale cash flow continues to pour in and the overall market situation stabilizes, DOGE has the potential to reach the target of 0.42 USD in the short term.
Source: https://tintucbitcoin.com/dogecoin-co-tang-toi-042-usd/
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