Dogecoin is back in the spotlight after holding firm at the important support level of $0.25. Analysts note that this level has now become a foundation for bullish momentum. As long as Dogecoin maintains above this mark, the bullish targets of $0.33 and $0.40 are becoming increasingly feasible.

Traders are closely monitoring the current structure of DOGE, indicating that several bullish patterns are forming. These include a double bottom pattern and a breakout from a long-term downtrend. Technical signals suggest that Dogecoin may be preparing for a strong price increase in the short term.

Bullish chart promotes optimism

Dogecoin recently broke out of the ascending price channel and confirmed support above $0.25. This setup has historically led to strong price increases. If this breakout momentum is maintained, many analysts predict the price will reach the target of $0.33 and then $0.40.

Additionally, the formation of a cup-and-handle pattern on the daily chart is being viewed as a positive signal. This pattern, combined with strong trading volume and buying pressure, reinforces the likelihood that DOGE's price will continue to rise.

Whale Activity Strengthens Bullish Case

Besides technical indicators, on-chain data shows that large holders - often referred to as 'whales' - are accumulating Dogecoin. Wallets holding millions of DOGE have consistently added to their positions over the past few weeks, indicating confidence in the future potential of this coin.

This accumulation further strengthens the power of the current price volatility, indicating that the breakout momentum may have more room to grow. If overall market sentiment remains positive and DOGE continues to attract buyers, the coin could rise above $0.33 and test the $0.40 level in the coming weeks.

What to Watch Next?

As Dogecoin continues to hover around the $0.27 level, traders should keep an eye on key price zones:

  • Support level of $0.25: An important level that must hold to maintain bullish trend

  • Resistance level of $0.33: The first major target if the uptrend continues

  • The $0.40 area: The next important zone where profit-taking may occur

If these thresholds are breached with high trading volume, Dogecoin could experience much greater volatility. However, failing to hold the $0.25 level may lead to a short-term correction.