After a brief dip, Dogecoin appears to be catching its breath and recalibrating for another upward push. Following an impressive rally that briefly touched $0.25, the memecoin favorite is now hovering just under that mark. While some traders took profits over the weekend, recent technical indicators suggest that Dogecoin isn’t done yet — especially with a bullish RSI crossover pointing toward the coveted $0.30 target.
On Sunday, May 11, DOGE saw a modest 5.8% correction, dropping from $0.25 to around $0.2341. Though some might view this pullback as a momentum killer, analysts and data alike point to it being a healthy pause, rather than a reversal. Importantly, the RSI crossover from May 7 remains intact, keeping bullish momentum alive. The short-term RSI sits at 71 while the longer-term signal line trails at 59, a clear sign of upward pressure still building.
Dogecoin’s immediate trajectory, however, is closely tied to Bitcoin’s next move. If BTC holds above the $104,000 mark — a level supported by recent optimism around geopolitical developments and macroeconomic stability — DOGE has a much better chance of regaining its stride. Conversely, a slip below that threshold could invite renewed caution across the altcoin market, potentially delaying any near-term breakout.
On-chain and derivatives data offer more clues. According to Coingecko, trading volume for DOGE dipped from $4.5 billion to $3.5 billion over 24 hours, signaling a bit of a cooldown. Meanwhile, open interest in Dogecoin futures dropped by 7.3% to $2.80 billion, while daily trading volume slid nearly 20%. Liquidations tallied over $20 million — with 75% of them being long positions — a shakeout that may have helped reset leverage imbalances.
Interestingly, while the broader retail crowd appears to be stepping back, some top traders are doubling down. Long/short ratios on Binance and OKX are near 2.8, indicating more longs than shorts. But what really stands out is that large-volume traders are leaning heavily long, with some platforms showing ratios exceeding 5. This suggests that whales might be positioning for another leg up.
The technical structure also supports this thesis. A clear higher low followed by a higher high has established a bullish sequence. Moreover, DOGE remains comfortably above the lower bound of the SuperTrend indicator, currently near $0.191 — reinforcing that the broader trend is still upward.
The RSI crossover that occurred on May 7 — where the shorter-term momentum indicator crossed above the longer-term signal line — often signals a significant trend shift. Since then, momentum has held steady, despite short-term volatility.
What would confirm a breakout from here? A strong daily candle close above $0.25, coupled with increasing buy-side volume. In fact, there are early signs of this happening already. On-chain volume delta flipped positive on Monday with $27.96 million in net buying — a potential signal that institutional or “smart money” is quietly buying the dip.
However, there’s still risk. A fall below $0.225 could invalidate the bullish pattern, and a deeper drop under $0.19 would mark a breakdown of the current structure. Until then, the meme coin remains in position for another attempt at $0.30 — as long as broader market conditions stay supportive.
Dogecoin’s fate, as always, is tied to more than just charts. But for now, the momentum is still on the side of the Shiba-faced token.
