Dogecoin price has rallied this month, mirroring the performance of Bitcoin and most altcoins. Dogecoin ( DOGE ), the biggest meme coin in the crypto industry, rose to $0.2357 on Wednesday, up by almost 80% from its lowest point in April. This recovery has led to speculation that it may jump to $1 during this cycle. Dogecoin has a few catalysts that may support its upward trend. The most notable is the potential approval of DOGE ETFs filed by companies like Bitwise, Grayscale, 21Shares, and Rex Shares . Polymarket odds of a spot DOGE ETF approval have risen to 63%, up from this month’s low of 60%. These odds have increased because Dogecoin is a proof-of-work coin like Bitcoin ( BTC ), meaning the SEC may not consider it a security. Another potential catalyst for Dogecoin is the continued rise in volume in both the spot and futures markets. CoinGecko data shows that 24-hour trading volume jumped to $3.14 billion, higher than Shiba Inu’s ( SHIB ) $3.17 billion and Pepe’s ( PEPE ) $2.3 billion. You might also like: Michigan designates May 13 as Digital Asset Awareness Day to promote crypto education CoinGlass data shows that Dogecoin’s futures open interest stood at $2.92 billion on Wednesday, a significant increase from last month’s low of less than $1 billion. The interest has remained above $2 billion since May 9. Futures open interest is an important metric because it reflects the number of active contracts yet to be settled. A higher open interest indicates growing demand and liquidity. Dogecoin may also benefit from the expected surge in Bitcoin price, as the two assets have a close correlation. Analysts at Standard Chartered, for example, have set a target of $200,000 for Bitcoin. Dogecoin price technical analysis DOGE price chart | Source: crypto.news The three-day chart shows that Dogecoin has gradually formed a large accumulation cylinder since October 2023. This structure is made up of two ascending and diverging trendlines, also known as a rising wedge or megaphone pattern. The accumulation cylinder follows seven key points, which are illustrated in the chart above. A bullish breakout typically occurs at the seventh point in this formation. If the pattern holds, DOGE could rally toward the psychological level of $1. To do so, it must first break above the sixth level at $0.4877 and then surpass its all-time high of $0.7517 to confirm the bullish outlook. One caveat to this Dogecoin price prediction is that it’s based on a three-day chart, suggesting that a 325% rally to $1 may take several months, or even over a year, to play out. For example, the move from point 6 to 7 took more than five months to complete. You might also like: Swiss Crypto Valley soars 132%, now home for nearly 1,750 blockchain firms
