Dogecoin Eyes Comeback as Key Metrics Flash Green

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Dogecoin (DOGE) has retraced into the critical 50%-61.8% Fibonacci retracement zone—a historically reliable support area that often precedes bullish reversals. At press time, DOGE was trading around $0.16, effectively erasing all the gains from its election-fueled rally, which briefly saw it touch $0.48.

#Dogecoin has completed its pullback at the Fibonacci 0.5-0.618 levels 🔥

This pattern aligns with previous cycles. $Doge is now in an uptrend and hasn't reached the top in this cycle. pic.twitter.com/qtzPCGMODO

— Trader Tardigrade (@TATrader_Alan) April 5, 2025

Despite the pullback, the memecoin’s month-long consolidation hints at a potential reaccumulation phase. Technical indicators like the Relative Strength Index (RSI) show a rebound from oversold territory, suggesting a bullish divergence that could foreshadow an imminent breakout.

On-chain data further supports this thesis. According to Glassnode, the number of addresses holding at least 10,000 DOGE has surged from 236,000 to 240,000 over the past month—a six-month high. This uptick points to renewed interest from mid-tier holders and whales, historically key players in DOGE’s price surges.

Institutional metrics are also aligning. Open Interest (OI) in DOGE futures remains elevated above $1 billion, echoing levels last seen during Q1 2024’s explosive run. Back then, a similar consolidation preceded a parabolic move that took DOGE to $0.22 and solidified its position in the top ten cryptocurrencies by market cap.

However, DOGE’s infamous volatility remains a double-edged sword. A recent 2% dip underscores the asset’s sensitivity to short-term sentiment. Moreover, over $3 billion in DOGE liquidations during Q1 highlight the risk facing leveraged traders.

While Dogecoin’s earlier rallies were largely driven by celebrity endorsements and viral momentum, today’s landscape demands more structural resilience. To break out decisively, DOGE must absorb ongoing liquidations and establish bullish momentum across both spot and derivatives markets.

Also Read: Dogecoin Holds $0.16 — Rally or Crash Ahead?

With key technical and on-chain signals aligning, Q2 2025 could offer Dogecoin another shot at a breakout—if it can weather the volatility and recapture the market’s imagination. Investors and traders alike will be watching this memecoin closely, hoping history is poised to repeat itself.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.