Dogecoin (DOGE) has recently displayed promising technical indicators, sparking excitement among traders and investors. One notable signal is the recurrence of a bullish Moving Average Convergence Divergence (MACD) crossover, an event that historically preceded substantial price surges for the meme coin. The last time this indicator turned bullish, DOGE price gained 340%.

The Bullish MACD Signal

The MACD is a popular momentum indicator used in technical analysis to identify the strength, direction, and duration of a trend in an asset's price. It generates a "bullish cross" when the MACD line (blue) crosses above the signal line (orange). This pattern suggests a potential shift in momentum and often precedes significant upward price movements.

Historical Performance

In late 2024, a similar bullish MACD crossover occurred, triggering a remarkable 340% rally in DOGE's price within a few weeks. Examining past instances reveals that DOGE has a tendency to rise sharply following such crossovers, with gains ranging from 270% to 340% in previous occurrences.

Current Market Sentiment

As of July 2025, the MACD indicator has once again flashed a bullish signal on the weekly chart. This development has ignited optimism among analysts and traders, who anticipate a potential breakout in the coming days or weeks. Popular analyst Cas Abbé noted that DOGE has already pumped 30% after the golden cross, suggesting bigger moves are yet to come. Echoing this sentiment, fellow analyst Mikybull Crypto remarked that the price went "nuts" the previous time this happened.

Technical Analysis and Potential Targets

Dogecoin's chart structure indicates a higher probability of upside potential once a decisive breakout occurs above key levels. A double-bottom pattern, following DOGE's breakout from a multi-month downtrend, further strengthens the bullish outlook, with upside targets sitting around $0.478, representing a potential 90% increase from current price levels.

Other Bullish Indicators

Besides the MACD crossover and the double-bottom pattern, other technical indicators also support a bullish outlook for Dogecoin. A cup-and-handle pattern has emerged on daily charts, suggesting a potential 165% price increase, potentially driving DOGE toward $0.70 under favorable conditions. The Money Flow Index (MFI) has risen to 89.12, indicating increased buying activity. The Aroon Up indicator sits at 100%, reinforcing bullish sentiment through consistent higher highs. Dogecoin has cleared significant resistance near $0.25, which had kept the price trapped in a consolidation range since March. Following this breakout, analysts are targeting $0.33 in the near term, with $0.357 as the next key level to watch. Technical charts show DOGE forming higher highs and higher lows within an ascending parallel channel, a formation that suggests a strong and stable uptrend.

Institutional Interest

Adding further fuel to the bullish fire is the growing institutional interest in Dogecoin. Bit Origin Ltd announced a $500 million funding round dedicated to building a Dogecoin treasury. The firm plans to support long-term adoption and market liquidity through this treasury, which may prove pivotal for sustaining the upward momentum of the Dogecoin price.

Potential Challenges and Considerations

Despite the overwhelmingly bullish signals, it's important to acknowledge potential challenges and exercise caution. DOGE faces immediate challenges at the $0.357 resistance zone, which has historically proven difficult to overcome. If DOGE fails to hold the current levels and faces selling pressure, the price could retrace to the $0.21–$0.17 support range. The Relative Strength Index (RSI) is at an extreme level, which presents strong warning signs, as historical analysis shows readings above 80 typically precede corrections of 15–25%.

Conclusion

Dogecoin is exhibiting strong bullish signals, driven by a recurring MACD crossover, positive technical patterns, and increasing institutional interest. While challenges remain, the overall outlook suggests a potential for significant upward price movement in the coming weeks and months. As always, investors should conduct their own research and exercise caution when investing in cryptocurrencies.