[VKGAME Virtual Currency] Dogecoin is poised for a breakout, with $0.25 as a critical threshold, attracting attention for potential positive developments

The cryptocurrency market has recently experienced significant volatility, with a sharp correction becoming the focus, as the total amount of liquidations across the industry reached $210 million in just one hour. Amid this widespread downturn, the resilience of the established Dogecoin (DOGE) and its future direction have drawn heightened attention from analysts and investors, focusing on its technical formation evolution, key market support levels, and potential driving factors, collectively outlining a scenario where Dogecoin may be brewing a breakthrough amid market turbulence, with the $0.25 price level widely regarded as a key turning point for future trends.

Recent statistics show that as much as 77.9% of Dogecoin's circulating supply is currently in profit, ranking fourth among mainstream cryptocurrencies, only behind Bitcoin (98.4%), Ripple (XRP, 90%), and Chainlink (LINK, 80.5%). This means that even though the current price has fallen from recent highs to around $0.19, with a decline of over 14% in the past week, the vast majority of early or low-position holders are still in the green. This situation effectively reduces potential concentrated selling pressure and provides a strong psychological support base for the price. In the past 30 days, Dogecoin has still recorded an increase of over 16%, further corroborating its relative strength amid the broader market adjustment.

From a technical analysis perspective, there is even more solid support for potential upward movement. Notable analyst Jmorg, through a detailed study of weekly charts, pointed out that Dogecoin's Money Flow Index (MFI) is significantly accelerating from historically low levels, clearly indicating that buying momentum is continuously building. Particularly noteworthy is that its Bollinger Bands width has narrowed to historic lows. This extreme volatility compression phenomenon is typically seen in technical analysis as a significant precursor to a major market breakout. Historical retrospectives show that similar volatility compressions often become catalysts for driving Dogecoin's price back to or even beyond its historical highs. Based on Fibonacci retracement tools and current market momentum, Jmorg believes that DOGE's price is likely to first challenge the previous high of the $0.73 region, and if subsequent momentum is sufficient, it could even reach around $1.20.