- Dogecoin nears key support trendline; historical breakdowns often preceded major rallies.
- Trading volumes and derivatives activity surge as DOGE tests critical multi-year support zones.
- Market data shows bullish positioning persists despite macro pressure and short-term price pullback.
Dogecoin is approaching a critical support trendline that has defined its market structure since 2022. The pattern depicted in the two-week chart reveals that there is a common trend of breakdown and then rallies up strongly. Dogecoin’s historical price behavior suggests that a similar setup could develop once again if the current support level fails.
Dogecoin Price Structure and Long-Term Trendline Behavior
The long-term chart displays ascending trendlines connecting higher lows from 2019 through 2025. In 2020, Dogecoin broke past its first major trendline and began a strong rally into 2021 reaching a cycle peak. Following the consolidation, there was a new upward trendline, which controls the next phase in the market since 2022.
According to Trader Tardigrade, Dogecoin is now testing its latest ascending trendline. The data indicates that previous breakdowns from similar trendlines have historically preceded large bullish expansions. The pattern shows price candles approaching the lower boundary of support, which could serve as a key technical area before a potential upward continuation.
Dogecoin has a market capitalization of $26.54 billion and trades at $0.17. As per the data provided by DeFiLlama, the Total Value Locked (TVL) of the network is 16.7 million, which has been steadily growing since mid-2023. There has been an increase in liquidity participation in DeFi with TVL showing growth of less than $5 million to approximately $25 million in early 2025.
Market Conditions, Trading Activity, and Derivatives Data
Recent macroeconomic developments have added short-term pressure on Dogecoin’s price. According to market reports, Federal Reserve Chair Jerome Powell’s comments on persistent inflation triggered an 8.4% decline in DOGE to $0.18. Trading volume, despite the pullback, shot up 60% to over $2 billion, with both retail and institutional traders actively involved.
Coinglass data records total derivatives volume at $5.39 billion, with open interest at $1.68 billion. Options volume rose 1,528.62% to $34.95 million, indicating higher engagement in derivative trading. The Binance DOGE/USDT ratio of 2.68 shows more long positions, while OKX data records a ratio of 4.06, also favoring longs.
Analysts maintain that Dogecoin’s cyclical structure remains intact across higher timeframes. A confirmed breakdown of the current support trendline could once again precede a major bull run, reflecting the historical behavior seen in previous market cycles.
