Dogecoin signals strength as wallets and trading volume increase simultaneously.

After months of consolidation, Dogecoin (DOGE) is drawing attention again. And this time, the signals seem more convincing than ever.

In 2025, DOGE has recorded a slow but steady recovery, with the price currently hovering around $0.199, just below the important breakout zone.

The price volatility of this memecoin is currently supported by increasing trading volume, a significant uptick in wallet activity, and positive technical signals that analysts believe could generate a new growth spurt.

Let's analyze the story behind the rise of DOGE with Bitcoin Magazine.

Trading volume skyrocketed to 1 billion USD

The most direct cause is the sudden increase in trading activity. According to analyst GA Trading, in the past 24 hours, Dogecoin has recorded over 1 billion USD in trading volume.

The surge in trading volume often accompanies significant breakouts, and the current movement of DOGE breaking out of the descending triangle aligns with that argument. Note that the breakout occurs within the 4-hour timeframe.

Breakout chart of the triangle pattern and bullish crossover – 4 hours | Source: GA TradingThis development follows a quiet recovery throughout 2025. After hitting the bottom during the correction in June, the price of DOGE has gradually recovered to around $0.18 – $0.19.

This increase may not have drawn much attention, but now, DOGE may finally be ready to break out.

The surge in the number of holders strengthens confidence

Another underestimated factor is that the number of holders of this memecoin surged in May during a one-day growth.

Although it has cooled down a bit since then, according to data from Santiment, the number of wallets holding DOGE is still at its highest level in 2025.

The number of DOGE holders is surging | Source: SantimentThe increasing holder base indicates confidence, rather than mere speculation. Even when the price stagnated in June, wallets did not proceed to sell.

This long-term holding behavior helps solidify the foundation for Dogecoin, especially when combined with a significant increase in short-term trading volume.

The sudden increase in the number of holders in one day in May may have positively affected long-term players.

RSI indicates hidden bullish divergence

Looking deeper, the Relative Strength Index (RSI) is signaling growth. RSI measures price momentum; with a level above 70 indicating overbought, and any level below 30 indicating oversold.

Bullish Divergence | Source: TradingViewCurrently, while the price of DOGE has made a lower high, the RSI has made a higher high. This is called a hidden bullish divergence, a signal indicating that momentum is forming even though the price has not broken out. The RSI is currently in the 65-68 range; it has not entered the overbought zone, indicating there is still room for growth.

This divergence indicates that the bulls are preparing to push Dogecoin higher if the price breaks through the next resistance level.

RSI is a momentum indicator that tracks the strength of recent price changes to identify overbought or oversold conditions in the market.

Fibonacci levels indicate a clear breakout target

The price chart shows a Fibonacci setup based on the typical trend. The Fibonacci levels are drawn from the April reversal low to the May peak and then the pullback in June.

This setup gives us 3 important levels to monitor:

Fibonacci indicates the main breakout areas | Source: TradingViewFibonacci levels are tools used to predict potential resistance and support areas based on past price movements.

Since DOGE has very few resistance levels between these levels, breakouts are often strong, while drops can occur rapidly.

Interestingly, the chart also suggests the possibility of forming a cup pattern, a bullish pattern, but the handle has not yet formed. Until this happens, a safer option is to focus on the breakout of the triangle pattern and the Fibonacci levels.

DOGE is showing real momentum. The combination of a trading volume of 1 billion USD, a rising number of holders, and RSI divergence is creating a clear breakout structure.

This memecoin has surpassed the main trend lines on the 4-hour chart, with the MA-50 and MA-200 preparing to form a bullish crossover.

Vincent