Dogecoin Surges 38% in May, Driven by Strong Market Demand

Dogecoin (DOGE) has experienced a significant surge in its price, gaining 38% in May, which marks its strongest monthly performance this year. This rally has been driven by strong market demand, with spot-buyer volumes taking charge since March. The memecoin’s market strength has been supported by robust onchain insights, indicating a pattern of aggressive buying over selling, similar to the breakout rally observed in November 2024.

Data from CryptoQuant shows that DOGE’s spot taker 90-day cumulative volume delta (CVD) has been "taker buyer dominant," suggesting more aggressive buying than selling. This pattern was last seen in November 2024, leading to a 385% rally to $0.48 in Q4, 2024. Additionally, the long-term holder net unrealized profit/loss (NUPL), which tracks unrealized profits or losses for DOGE holders with a lifespan of at least 155 days, recently crossed 0.5 for the first time since March 1, 2025. A NUPL above 0.5 indicates that most holders are in profit, signaling confidence and a reduced likelihood of selling, which reinforces price stability.

These metrics suggest strong market demand, with investors actively accumulating Dogecoin, contributing to its recent gains. The favorable market structure has led to a bullish outlook for DOGE, with anonymous technical analyst Trader Tardigrade revealing a bullish outlook involving the DOGE/BTC trading pair. The chart reflected a previous rally where DOGE surged 30,000% from $0.0024 to $0.739, suggesting a similar setup. Historically, Dogecoin and Bitcoin share a strong correlation, meaning BTC’s movements often dictate DOGE’s trajectory. The analyst predicts BTC’s surge could be followed by a sideways phase, triggering a massive DOGE rally for weeks.

In a separate analysis, Trader Tardigrade noted that the immediate target for Dogecoin remains $1, after the memecoin exhibited a weekly MACD bullish crossover for the third time since 2024. Each bullish crossover has been followed by a breakout, with prices jumping 180% between January 2024 and March 2024, and a whopping 385% between September 2024 and December 2024. Crypto trader Javon Marks outlined a similar target for Dogecoin, forecasting an immediate target of $0.65, which will be its highest price since May 2021. Marks said, “$DOGE (Dogecoin) now showing MAJOR STRENGTH after setting Higher Lows! $0.6533 can be coming in another nearly +180% upside and prices could even break above, bringing $1+ into play.”