Dogecoin Surges 3.37% as Bullish Momentum Builds

Dogecoin [DOGE] has recently shown signs of bullish momentum, reclaiming key technical ground after breaking out of a descending channel and retesting it as support. This movement confirms a bullish structure, with the price holding steadily above the $0.22 level. At the time of writing, DOGE was trading at $0.2238, reflecting a 3.37% gain in the past 24 hours. The $0.25 zone is identified as immediate resistance, having previously acted as a support-turned-supply zone in February. A successful break above this level could pave the way for a rally toward $0.35. Conversely, failure to reclaim it decisively may expose DOGE to a short-term retracement.

On-chain liquidation data indicates a significant tilt in favor of bulls. On the 18th of May, short liquidations totaled $387K, while long liquidations were only $65K. This disparity suggests a market-wide short squeeze, as bears were forced to exit underwater positions. The liquidation imbalance typically accelerates price movement and creates upward pressure.

The MVRV Z-score for Dogecoin sat at 0.94, well below the 2.5 threshold often associated with overvaluation. This metric compares market cap to realized cap, offering insight into average holder profitability. A low score suggests minimal unrealized profits, meaning that most holders have little incentive to sell aggressively. Consequently, the current reading indicates healthy conditions for sustained upward price action.

DOGE’s Stock-to-Flow Ratio has surged to an unprecedented 99.53, indicating that the growth of circulating supply has significantly slowed or stopped, increasing perceived scarcity. However, such a sharp rise could also signal unusual market activity or upcoming volatility. Historically, sudden spikes in Stock-to-Flow have preceded both major rallies and corrections.

Network activity shows a short-lived surge followed by a decline. Daily active addresses recently spiked to over 500K earlier in May but have since retraced to just 28.6K. Likewise, transaction counts dropped from the monthly highs to only 8.8K. This abrupt decline suggests that the earlier price rally may have been driven by short-term speculative interest rather than sustained utility or user growth.

DOGE derivatives data present a mixed outlook. Total volume dropped 22.05% to $3.46B, signaling reduced speculative participation. However, Open Interest (OI) rose 2.7% to $2.64B, indicating that many traders continue to hold their positions. Notably, Options OI surged 10.61% to $378.98K, suggesting increasing demand for volatility exposure or hedging. Meanwhile, Options Volume dropped sharply by 85.89%, revealing reduced intraday speculation.

Dogecoin has a strong potential to reclaim $0.25 and sustain its breakout, supported by heavy short liquidation pressure, an undervalued MVRV ratio, and a steady rise in OI. However, inconsistent on-chain activity and a sudden spike in the stock-to-flow ratio pose short-term volatility risks. While bullish momentum remains intact, confirming a move above $0.25 with strong volume will be essential for validating the next push toward $0.35.