Analyst Trader Tardigrade identifies a Diamond Bottom on the Dogecoin daily chart, highlighting a confirmed breakout and bullish reversal setup.
Notably, Dogecoin has surged past a key psychological level, trading at $0.2041 as of May 9, 2025. The move comes alongside a 24-hour gain of 11.7% and a seven-day increase of 13.2%. Trading volume also crossed $2.9 billion within the same period, reflecting heightened market interest.
While this price action is notable, the focus now turns to technical and on-chain indicators signaling the potential for sustained upward movement.
Dogecoin Diamond Bottom Breakout
Tardigrade identified a Diamond Bottom pattern in the daily timeframe, a classic bullish reversal formation. This pattern followed a prolonged downtrend from January’s $0.40 high to an April low near $0.13. As the pattern developed, price volatility expanded before narrowing, forming the diamond-shaped structure.
The diamond’s upper trendline had resisted price advances on several occasions. However, Dogecoin recently broke above this boundary, signaling a potential trend reversal.
Tardigrade’s chart marked the breakout area. Now, the analyst is targeting $0.29 next for DOGE, implying a 45% increase from the $0.20 mark.
#Dogecoin is breaking out of a diamond bottom pattern on the daily chart 🔥$DOGE target is set at $0.29 🚀 pic.twitter.com/QNF87TJyv4
— Trader Tardigrade (@TATrader_Alan) May 8, 2025
Adding to The Bullish Setup
On a separate 12-hour chart, analyst Javon Marks identified a falling wedge stretching from a $0.48 high in late 2024 to a narrowing range between $0.14 and $0.16. Dogecoin has now moved beyond the wedge’s upper boundary, which typically suggests a bullish breakout.
Further supporting this view, Marks’ chart featured a curved trajectory pointing toward $0.30. This short-term projection complements a longer-term technical target at $0.65. Achieving this level would represent a 225% move from the current price.
Moreover, the Relative Strength Index (RSI) showed higher lows between February and April even as the price declined. This positive divergence indicates weakening bearish pressure, reinforcing the strength of the recent breakout.
On-Chain Metrics Show Strong Network Growth
On-chain data from IntoTheBlock also supports the technical patterns, revealing substantial increases in Dogecoin network activity. The latest 7-day data highlights a 102.40% rise in new addresses, suggesting a sharp influx of new participants.
Dogecoin Daily Active Addresses
Simultaneously, active addresses increased by 111.32%, pointing to elevated usage across the network. Additionally, the number of zero-balance addresses climbed by 155.54%, reflecting a surge in wallet creation or activity.
