Dogecoin (DOGE), currently priced at $0.1704, has seen renewed optimism despite recent market headwinds. Analysts highlight significant on-chain movements and technical signals that point to a potential surge of over 260%, placing the $1.25 mark within reach.

Exchange Outflows Fuel Bullish Sentiment

Recent on-chain data from CoinGlass reveals more than $5 billion in Dogecoin has been withdrawn from exchanges since November, including over $658 million in outflows since early May. This trend suggests growing investor confidence as tokens moving off exchanges typically reduce immediate sell pressure and signal a long-term holding mindset.

Supporting this outlook is DOGE’s consistently positive funding rate—0.0056% since mid-June—showing that futures traders are leaning bullish. Reduced supply combined with rising investor expectations creates an environment ripe for upward movement.

Falling Wedge Pattern Implies Strong Breakout

Technical analysis indicates that Dogecoin has formed a falling wedge—a classic reversal setup. Market analyst Javon Marks believes this could lead to a breakout rally up to $1.25, representing a 260% increase from current levels. The first milestone in this bullish scenario is $0.2600, a 52% gain, while a drop below $0.1535 would invalidate the trend.

Key resistance zones at $0.2157 and $0.2685 are aligned with Fibonacci extensions, providing potential breakout triggers. The long-term chart supports a bullish structure of higher highs and higher lows, reinforcing upward momentum if current support holds.

Derivatives Activity Points to Accumulation

Dogecoin’s derivatives market adds further support to the bullish case. Open interest in futures has climbed 0.22% to $1.78 billion, suggesting that more traders are taking long positions. Although options volume declined by nearly 94% to $72.39 million, open interest in options rose by 3.16%, indicating traders are preparing for sharp moves.

Liquidation data adds another bullish layer: short positions lost $42.83K in the latest session, compared to $57.60K in total liquidations—hinting at pressure against bearish bets and a likely breakout past $0.1720.

Technical Indicators Show Consolidation With Breakout Potential

On the 4-hour chart, Dogecoin is consolidating between $0.1700 and $0.1720, a range signaling indecision. A breakout above $0.1720 could initiate a short-term rally, while a drop below $0.1700 may lead to further downside.

MACD analysis shows a slight bearish bias as the MACD line remains just under the signal line, though the gap is narrow. RSI stands at 42.59—neutral, but with room to swing bullish above the 50 threshold. A close above $0.1720 would likely trigger renewed momentum toward $0.2600 and beyond.

In summary, Dogecoin’s fundamental signals, coupled with supportive technicals and derivatives data, suggest the potential for a major bullish breakout. If momentum builds and resistance levels are cleared, the elusive $1.25 mark may no longer be speculative, but increasingly plausible.

Also Recommended: Pi Coin Faces Turbulence as $0.4 Crash Looms Amid Token Unlock Surge