Important takeouts:
Doge formed a double bottom after breaking the long-term downtrend, hinting at a rally to the New Year’s highs.
Doge’s futures open up interest, spot volume and owner profits, indicating a rise in demand and a decline in selling pressure.
Dogecoin (Doge) shows strong signs of high gatherings as technical indicators and on-chain metrics line up to support bullish continuity. Currently trading above $0.21, Doge forms a textbook double bottom pattern in the historically reliable inversion layer, Daily Chart. This bullish structure develops after Doge erupted decisively from years of downward channels and further acknowledged changes in momentum.
After the breakout, MemeCoin entered the integration phase between $0.19 and $0.21. An immediate break above $0.21 could pave the way to $0.25, the key level to complete the double bottom pattern. This paves the way to the last level we’ll see in December 2024, $0.48.
In particular, the larger structure of Doge on the weekly chart adds more weight to bullish cases. Crypto Analyst Trader’s Tardigrade noted that crypto assets are traded within the ascending spreading wedges, a technical formation known for their parabolic breakout possibilities. Price action suggests that Doge will test this cap and could potentially violate it.
Based on historical precedents and structural analysis, such a move could lay the foundation for a 300% rally once $0.25 is recovered, and once Doge clears the $0.47 resistance, the $1 level emerges as a realistic long-term target.
Related: Crypto Spot Trades Decline 22% in Q2 despite Bitcoin Rally: Report
Onchain Doge Data Supports Bullish Bias
From an on-chain data perspective, Doge’s metrics reflect this bullish setup. Doge Futures Markets’ Open Profit (OI) shows a massive jump in July, with a renewed speculative activity, up from $1.7 billion to $2.85 billion, or 67%.
Despite the increase in OI, funding rates remained neutral, indicating that leveraged longs have not yet overheated the market. In parallel, the Spot Cumulative Volume Delta (CVD) continues to rise slowly, revealing net purchase pressure in the Spot market.
Adding more weight is the long-term holder net unrealized unrealized profits/losses (LTH-NUPL), which is now in the optimism and river zone. This psychological zone means that long-term Doge holders are sitting in moderate interests and are changing their feelings from uncertainty (fear of hope) towards careful confidence.
Historically, all major Doge breakouts, including the 2021 and 2024 breakouts, began when they moved to this zone. This reflects a market where long-term holders begin to reduce sales pressure and allow short-term capital inflows to drive price action.
Related: Ethereum Open Interest Hits in History as Traders Predict the Top Price at $30,000
