Dogecoin (DOGE) is showing renewed strength after weeks of subdued action, positioning itself for a possible move toward its monthly high of $0.2043 as momentum builds across both technical and on-chain fronts.

The meme-inspired cryptocurrency, which began as a parody, recently surged to the forefront of the crypto market conversation once again, thanks to a compelling mix of bullish indicators, whale accumulation, and surging trading volume.

After bouncing sharply from the $0.163 level earlier this month, DOGE now trades around $0.174, gaining over 7.9% in the last seven days and outperforming both Bitcoin and Ethereum in the same time frame.

Dogecoin’s recent performance stems from a confirmed bounce off the critical support level at $0.166, which came into play after multiple failed attempts by bears to push the price lower.

During the most aggressive trading hour on July 6, DOGE jumped from $0.166 to $0.173 in a massive surge backed by $1.14 billion in trading volume, nearly six times the daily average.

Since then, the price has consolidated tightly between $0.170 and $0.173, while repeatedly testing the $0.173 resistance level, indicating strong demand pressure just below a key breakout zone.

With institutional demand on the rise and wallet data showing a steady increase in whale holdings since June 28, market participants appear to be accumulating DOGE at current levels in anticipation of a larger move.

Technically, the setup has shifted from neutral to bullish, as momentum indicators like the Relative Strength Index (RSI) have climbed above the neutral 50 mark and continue to trend higher.

The Moving Average Convergence Divergence (MACD) also supports the case for bullish continuation, having printed a crossover with the MACD line overtaking the signal line in early July.

Traders are now eyeing the $0.176 to $0.180 zone, which represents immediate resistance and a potential launchpad toward the neckline target of $0.2596, previously outlined from a double bottom pattern that formed around $0.1467.

This pattern, visible on the daily chart, includes two major troughs — the first bottom occurring in early April at $0.1299 and the second in late June at $0.1437 — both of which confirm the significance of the $0.1467 support zone.

On-chain data continues to affirm the bullish outlook, as wallets holding between 1 million and 100 million DOGE have increased their supply share by 0.34% in the last 30 days, signalling confidence among long-term holders.

Conversely, smaller investors have reduced their positions by 2.59%, often a sign that weaker hands are exiting while more experienced players take over the market.

This supply redistribution could provide DOGE with a more stable price floor, especially when combined with the visible increase in derivatives interest and renewed attention from institutions.

Adding to the bullish sentiment are political and macroeconomic developments, including speculation that Elon Musk’s recently launched “American Party” may integrate Dogecoin as a payment method on X.

Meanwhile, investors remain alert to potential volatility around former President Donald Trump’s “Liberation Day” tariffs set for July 9, which may impact broader markets and crypto risk sentiment.

Still, Dogecoin’s real-world use case is expanding, with Tesla continuing to accept it for merchandise purchases, and payment platforms like PayPal and Revolut integrating DOGE for select transactions.

For now, the key resistance levels lie between $0.173 and $0.180, with a clean breakout above this zone likely opening the door to a retest of the monthly high at $0.2043.

Should DOGE maintain momentum and break this resistance, bullish targets include the $0.24233 level — aligned with the 0.618 Fibonacci retracement — and ultimately the $0.2596 neckline.

While short-term consolidation may continue, the broader trend suggests that Dogecoin is building a strong base for a sustained recovery heading into the second half of 2025.

If the current conditions hold, and whales continue to accumulate, DOGE could be preparing for one of its most significant rallies since the 2021 bull run.

The post Monthly high at $0.2043 in focus as Dogecoin (DOGE) bounces back strongly appeared first on Invezz

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