- Dogecoin’s key support at $0.165 aligns with 0.5 Fib level, backing bullish sentiment.
- MACD crossover and RSI at 59 signal upward momentum without overbought pressure.
- Sustained outflows since November highlight bearish risks despite short-term optimism.
Dogecoin ($DOGE) has captured the attention of traders and investors, with recent price movements sparking discussions around its potential trajectory. As of May 8 trading at $0.1825, Dogecoin has recorded a 5.13% increase over the last 24 hours and a 3.54% rise in the past week. With a market cap of $27.2 billion and a 24-hour trading volume exceeding $1.1 billion, DOGE remains one of the most actively traded cryptocurrencies.
Key Technical Insights
According to analyst Ali Martinez, a critical ascending trendline has supported Dogecoin’s price since October 2024. This trendline, now near the 0.5 Fibonacci retracement level at $0.165, has consistently acted as a support zone. If the price dips toward $0.14, which aligns with the 0.382 Fibonacci level, it could present a strong buying opportunity.
Martinez suggests that a rebound from this support could propel Dogecoin to the $0.30 level, representing a nearly 100% upside. The 0.786 Fibonacci level, around $0.30, serves as a potential target in this bullish scenario. However, a decisive drop below $0.14 would likely invalidate this outlook, signaling a possible bearish trend.
This trendline has supported #Dogecoin $DOGE since October 2024. A dip to $0.14 could present a buying opportunity ahead of a potential rebound to $0.30.
— Ali (@ali_charts) May 7, 2025
Join me in this trade by signing up to @coinexcom using my referral link https://t.co/73n8mW9Y5p pic.twitter.com/lD9kr4BJOL
On-Chain Metrics and Market Sentiment
The latest on-chain data reveals a consistent pattern of net outflows for Dogecoin, particularly from mid-November to January, leading to price declines. Although slight inflows were seen in April, they were insufficient to drive a significant price recovery.
Support is around $0.17, while major resistance stands at $0.40. The dominance of outflows suggests persistent selling pressure, which could challenge any sustained bullish move.
Technical Indicators and Future Outlook
Technical indicators present a mixed outlook for Dogecoin. The MACD (Moving Average Convergence Divergence) has shown a bullish crossover, with the MACD line (0.0020285) above the signal line (0.0019144), indicating potential upward momentum.
Meanwhile, the RSI (Relative Strength Index) stands at 59.08, approaching bullish territory but not yet overbought. This suggests room for further upward movement without significant resistance.
