Dogecoin rebounded to $0.226 on May 21 after dipping from a high of $0.24.

Bullish flag and triangle patterns suggest breakout targets between $0.30 and $0.37.

200-day EMA at $0.21 holds firm; RSI at 59 signals room for further upside.

Dogecoin is showing signs of renewed strength after a rollercoaster week. On May 14, 2025, the token touched a high near $0.24. By May 17, the price dipped slightly to just above $0.21. As of May 21, it has climbed back to $0.226, reflecting a daily increase of 1.49%. This swing in price has sparked fresh analysis about the coin’s next direction.

One of the key signals catching attention is a Bullish Flag pattern forming on the two-hour chart. This setup, identified by World of Charts, appears after a sharp rise followed by a short pullback in a downward channel. 

“$DOGE on verge of another breakout,” the analyst noted, adding, “Formed bullish flag, expecting move towards $0.30 after successful breakout.” A clean break above the flag could trigger a 33.33% price jump from current price levels.

Support for this optimism comes from other technical patterns as well. Analyst Trader Tardigrade has highlighted a converging triangle taking shape on the daily chart. These setups, often seen before steep climbs, place potential breakout targets between $0.35 and $0.37. The triangle is situated just under the $0.25 level, a key area traders are watching closely.

On-Chain Trends Favor Dogecoin Rise

Beneath the charts, on-chain data is providing more signs of bullish pressure. Data from Coinglass’s OI-Weighted Funding Rate shows positive rates for Dogecoin. The current figure for DOGE stands at 0.0094%, indicating that traders holding long positions are paying short sellers. In crypto markets, that dynamic usually signals confidence in higher prices ahead.

Meanwhile, activity among dormant addresses has picked up, suggesting that long-time holders are beginning to move their DOGE. This kind of movement, paired with positive funding rates, has been a common pattern before earlier upswings.

There’s also notable behavior around Dogecoin’s long-term technical support. Over the past week, the coin has tested its 200-day Exponential Moving Average several times. This level, sitting at $0.21, has acted as a solid floor. The token is currently trading just above it, holding steady for now.

Upside Potential With Support Intact

If that support holds steady, Dogecoin might rise around 20% from its current position. That would bring the price near $0.27, which aligns with the 50% Fibonacci retracement level drawn from its August 2023 low of $0.05 to the December 2024 high of $0.48. This midpoint level often acts as a magnet for price.

The Relative Strength Index on the daily chart reads 59, putting it above the neutral line of 50. That points to continued buying strength, though not yet in overbought territory. It gives the bulls more room to run.

On the other side, if Dogecoin breaks below the 200-day EMA and fails to recover quickly, the price could slide further to its next weekly support level of $0.18.

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Filed under: Bitcoin - @ May 21, 2025 2:26 pm