Dogecoin Sees $658 Million Outflow, Eyes 50% Gain to $0.2600

Dogecoin has established a stable base near the $0.1703 mark, with analysts closely monitoring the potential for a breakout toward $0.2600 and beyond. This optimism is supported by several key indicators, including significant exchange outflows and bullish technical patterns.

Since early May, over $658 million worth of Dogecoin has been moved off exchanges, indicating a reduction in market supply and rising confidence among holders. This outflow suggests that investors are accumulating the cryptocurrency, which could drive prices higher in the long term. The circulating supply of Dogecoin remains at 149.74 billion, with no maximum limit, allowing for continued accumulation.

Technical analysis shows that Dogecoin is currently experiencing mild bearish pressure, as indicated by the Moving Average Convergence Divergence (MACD) indicator. However, the gap between the signal lines is small, suggesting that this pressure is not significant. The Relative Strength Index (RSI) stands at 42.59, reflecting a neutral market. If the price breaks above $0.1720, analysts anticipate a move toward $0.2600. Support levels remain firm at $0.1700, with $0.1535 acting as a secondary support level.

The 4-hour chart shows tight consolidation between $0.1700 and $0.1720, confirming short-term stability. This consolidation is further supported by an ascending triangle pattern observed on lower time frames, which is typically seen during price consolidations before trend continuation. This pattern aligns with the broader bullish structure that has been in place since early 2024.

Derivatives interest in Dogecoin remains strong, with open interest in futures increasing to $1.78 billion. Funding rates have remained positive since June 13, reflecting the anticipation of upward movement among derivatives traders. Despite a recent drop in options volume, open interest rose 3.16% to $1.45 million, indicating sustained interest in Dogecoin's potential price movements.

If the bullish structure holds and accumulation continues, Dogecoin could target higher levels beyond $1.25. Some long-range projections, based on trend strength and technical alignment, now extend to $5 in the current cycle. This target is supported by the ongoing exchange outflows and the strong derivatives interest, which suggest a positive outlook for Dogecoin's price in the coming months.