Dogecoin Price Soars Today (May 7): Could DOGE See a Massive 14% Rally?

Updated

May 7, 2025

Gambar Dogecoin Price Soars Today (May 7): Could DOGE See a Massive 14% Rally?

Jakarta, Pintu News – Dogecoin is at $0.17, suffering an intraday decline of around 1%. However, the meme coin is set to bounce back with a falling wedge pattern, which increases the likelihood of shaking out traders with short positions.

Dogecoin is holding around the $0.17 level and is poised for a high momentum move.

With bullish traders eyeing Dogecoin’s price to reach $0.20, the main question remains: will this recovery rally liquidate nearly 1% of DOGE’s $1.65 billion open interest (OI)?

Dogecoin Price Rises 1.98% in 24 Hours

On May 7, 2025, the price of Dogecoin recorded a 1.98% increase within 24 hours, trading at $0.1712 or the equivalent of Rp2,832. DOGE had its lowest level at Rp2,704 and its highest level at Rp2,864.

At the time of writing, Dogecoin’s market cap stands at around $25.55 billion, with trading volume rising 28% to $859.4 million within 24 hours.

Dogecoin Price Analysis Shows Possible Breakout Rally of 14% from Falling Wedge Pattern

Dogecoin’s price movement reflects the downward trend taking place on the 4-hour timeframe. Since April 23, the low points formed on Dogecoin are connected to form a support trend line.

However, the failure of the bulls to create a new swing high has resulted in the above resistance trend line. The combination of these trend lines results in a falling wedge pattern, which hampers the current price trend of DOGE.

On May 6, 2025, Dogecoin price was testing the lower boundary line of the falling wedge pattern with lower price rejection. This hints at the possibility of a new upward movement within the pattern.

The MACD and signal lines favor the chance of an upward movement as the average line prepares to make a positive crossover. In addition, Dogecoin is preparing to shoot up as it receives price rejection lower than the 200 simple moving average line.

The correction that occurred within the falling wedge pattern has led to the breakdown of the 50 and 100 SMA lines. This increases the likelihood of a negative crossover between the average lines, potentially triggering a sell signal.

Based on the Fibonacci levels, the breakdown will likely lead to a retest of the 38.20% Fibonacci level at $0.1560.

However, if Dogecoin experiences a bullish recovery and manages to break the resistance trend line, the price is expected to increase by more than 14% towards the psychological $0.20 mark.

Derivative Data Indicates Potential Short Squeeze

As a falling wedge pattern restricts Dogecoin’s movement, sentiment in the derivatives market has gradually turned positive. Based on data from Coinglass, long positions on Dogecoin derivatives have jumped to 51.83% in the last 4 hours (6/5).

This slightly changed the long-to-short ratio to bullish at 1,076. As long positions continue to increase, Dogecoin’s volume-weighted funding rate is on the verge of turning positive.

After dipping into negative territory, Dogecoin’s funding rate now stands at 0%. With bullish confidence growing in the derivatives market, the funding rate is likely to reverse to positive, reflecting bulls willing to pay a premium to maintain long positions.

In addition, the Dogecoin exchange liquidation map from Coinglass shows a high risk for short position holders.

If Dogecoin price experiences a bullish breakout, the uptrend towards $0.1735 is likely to liquidate $14.18 million in short liquidations.

This could trigger a short squeeze, further strengthening the uptrend in the DOGE price. As such, it could support Dogecoin’s price prediction to reach the $0.20 mark.

Will Dogecoin’s Price Rally be Disrupted due to the Opening of 96 Million DOGE Tokens?

Short-term price movements and derivative data point to a potential bullish move ahead. However, this meme coin will experience a slight supply spike with this week’s token opening.

Based on data from tokenomist, Dogecoin will see an opening of 97.89 million DOGE tokens worth $16.57 million in the next 7 days. This amount is equivalent to 0.07% of Dogecoin’s total circulating supply, registering a minor supply spike.

However, the linear nature of token opening is unlikely to cause sharp correction movements.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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