Top 3 reasons Dogecoin price may jump 110% soon

Dogecoin’s price could be on the verge of a strong breakout as a bullish flag forms, whale accumulation accelerates, and the funding rate remains positive.

Dogecoin (DOGE), the biggest meme coin in crypto, was trading at $0.2280 on Tuesday, up by 75% from its lowest level in April. 

Technical analysis points to Dogecoin price surge

The daily chart suggests DOGE may be approaching a bullish breakout. It is forming a bullish flag pattern, characterized by a vertical rally followed by a consolidating rectangle. This setup is typically associated with continuation to the upside.

Dogecoin is also about to form a mini golden cross pattern, as the spread between the 50-day and 100-day Exponential Moving Averages flips each other. 

Together, these patterns point to the potential for an aggressive breakout once the flag formation resolves. If that happens, the next key resistance to watch is $0.4815, the November 2023 high. This level represents a 110% increase from current prices. However, a drop below the psychological support at $0.20 would invalidate the bullish outlook.

DOGE price chart | Source: crypto.news

Dogecoin has a positive funding rate

Another bullish catalyst is DOGE’s consistently positive funding rate. According to CoinGlass, the eight-hour funding rate has remained positive since March 31 and continues to climb.

In perpetual futures markets, a positive funding rate occurs when long position holders pay fees to short sellers, typically a sign that market sentiment expects prices to rise.

Dogecoin price funding rate | Source: CoinGlass

DOGE whales are accumulating

Additional data shows that large holders are accumulating DOGE, a sign of increasing confidence in a continued rally.

According to Santiment, addresses holding between 100 million and 1 billion DOGE now control over 26.46 billion tokens, the highest level since December 2023. Their holdings have grown from 23 billion tokens in January.

DOGE whales are buying | Source: Santiment

Supporting this trend, data shows sustained exchange outflows since November 2023. Dogecoin has recorded over $695 million in outflows since April 1, indicating that investors are moving coins from exchanges to self-custody, typically viewed as a long-term bullish signal.