At the moment it looks like Dogecoin will not be starting the new week on the back foot. After reaching a high near $0.120 earlier this month, the DOGE price has fallen by about 33%, trading at $0.08379.
With sellers having the upper hand in the market for a few weeks now, there is uncertainty as to whether we will see another decline or whether it is time for a bullish relief rally. While there is some ambiguity here, there have been a few factors that could favor the bulls.
What you'll learn 👉
What’s Driving the DOGE Price
The biggest news about Dogecoin is not related to its price but supply instead. As per the suggestion posted on GitHub, Dogecoin’s supply will be reduced from 5 billion DOGE per annum to 500 million, thus bringing down its inflation rate from 3.3% to 0.3%.
Once the community passes this decision by implementing the hard fork approach, there will be much fewer coins generated annually, and hence, the pressure caused due to their supply will drop. Though this is just an idea and will take some time before implementation, it has already sparked discussions on the valuation of DOGE tokens.
Regulation is another positive point. Dogecoin has been recognized as a digital commodity in the United States, removing one of the biggest legal uncertainties surrounding the asset. On top of that, 21Shares and Grayscale have both submitted spot Dogecoin ETF filings, opening the door for institutional investment if regulators give the green light.
Large investors also appear to be paying attention. On-chain reports show whale activity increasing dramatically since late 2025, with some studies estimating growth of nearly 300%. Historically, periods of heavy accumulation by large wallets have often happened before stronger recoveries.
Here’s What the DOGE Chart Is Showing
We had a look at the DOGE chart, and it’s clear that buyers still have work to do. The DOGE price trades at $0.08379, well below the 100-period SMA at $0.09683. This puts the price some 15% below another critical level for technical resistance.
The moving average has formed a peak at $0.111 and has since turned lower, showing that the bigger picture is still on the side of the bears. However, there is still one setup to keep an eye on. An RSI bullish divergence emerged recently with the RSI reaching 40.32; the previous setup was seen during the last week of March.
Last time around, it triggered a move from around $0.088 to $0.120, yielding 36% gains in under four weeks. This time, though, the setup is a bit different. Back in March, Dogecoin was trading inside a stable accumulation range with a flat moving average.
The latest bullish divergence appears after a confirmed breakdown and follows another bullish signal in late May that produced only a brief bounce before sellers returned. Volume also remains fairly balanced at 63.87 million DOGE, showing active trading but no aggressive buying wave yet.
Read Also: Dogecoin (DOGE) Price Prediction: Analyst Sees Recovery Above this key level if Support Holds
Where Could the DOGE Price Go Next?
Everything comes down to support. If buyers continue defending the $0.079–$0.084 zone, the DOGE price could push back toward $0.085 and then challenge the declining 100 SMA at $0.09683. Clearing that level would expose the next resistance areas around $0.105 and $0.115, where the previous rally lost momentum.
The bearish case is equally straightforward. In case of failure to follow through buying on the latest RSI breakout and loss of existing support, the DOGE price may fall back to the $0.070-$0.065 range as part of the ongoing correction that began last May.
Dogecoin’s upcoming week seems set to be a significant one for the cryptocurrency. While the technical outlook is biased toward the cautious side, ETF talks, inflation reduction plans, and continuous buying by whales should give the bulls sufficient grounds to be active.
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