Dogecoin's DOGE/USD explosive 26% three-day rally is drawing renewed attention from traders, with technical signals and whale movements hinting at the beginning of a much larger bullish run. What Happened: Prominent analyst Kevin on Thursday shared technical analysis in his exclusive Patreon group, flagging a potential inverse head-and-shoulders pattern forming on the one to three-day DOGE chart, anchored at a key support level. He noted the 3-day MACD is showing early bullish momentum, though it hasn't yet crossed the zero line, a classic signal that the move is in its infancy.
Further confirmation may come from the 2-week Stochastic RSI, which is oversold and poised for a bullish cross above 20 cents, historically a powerful crypto buy signal. Kevin emphasized that while macro alignment remains important, the current structure shows strong breakout potential. Trader Tardigrade echoed the sentiment, pointing out that Dogecoin's 30% gain in under three days follows previous similar rallies of 24% and 26% over 5–6 days, calling this phase the start of a parabolic stage.
Also Read: Dogecoin Zooms 12% Higher: What’s Going On? Why It Matters: In an X post on May 9, Whale Alert data shows around 793.09 million DOGE, worth $153.2 million, being transferred from an unknown wallet to another unknown wallet. In another post on May 8, around 807.4 million DOGE, valued at $148.9 million, was transferred between two unknown wallets.
These movements between unknown wallets suggest institutional or whale repositioning, often preceding major price volatility. Coinglass data shows DOGE derivatives trading volume expanding by 118.95%, while open interest spiked 18% in a single day. Short liquidations as of May 8 spiked to $13.3 million, the highest since Feb. 3.
In the past 24 hours, DOGE liquidations stood at $20.5 million, with $14.3 million in short liquidations as traders were forced to close their positions with sudden price spikes. Prediction markets are catching on, with Polymarket bettors now giving Dogecoin an 80% chance of being significantly up by May 2025, a sharp rise from just 28% on May 5. Loading… Loading… Read Next:
