Dogecoin Price Increases Often Align with Boosts in Retail Futures Activity, Analysis Reveals

Dogecoin (DOGE) has experienced a significant increase of 48.7% in the last month, coinciding with a broader rise in the cryptocurrency market as fears of a global tariff conflict diminish. Despite these substantial gains, experts suggest that DOGE might still have potential for further growth before hitting its peak.

Expert Highlights Indicator That May Forecast Dogecoin Peak

A recent analysis by a contributor on CryptoQuant, burakkemeci, indicates that peaks in DOGE prices frequently correspond with increased activity in retail futures trading. The analyst presented a chart showcasing the correlation between DOGE price highs and spikes in futures trading by retail investors.

This chart features marked periods of intense retail trading activity in the DOGE futures market, highlighted by red bubbles. These bubbles tend to appear near major price peaks, indicating potential overheating in the market during these times.

Conversely, the green and pink bubbles denote times of reduced retail involvement, often aligning with more stable market conditions. These phases are generally seen as healthier environments for new investors considering entry points.

The analyst pointed out that keeping an eye on these red bubbles could assist traders and investors in predicting possible short-term peaks in DOGE. Increases in retail trading often indicate rising market greed, which can be a warning sign of imminent price corrections.

Currently, Dogecoin futures activity seems to be in a balanced state, suggesting that the asset still has room for appreciation before conditions become overly heated. This sentiment is shared by crypto analyst Anup Dhungana.

In a recent update on X, Dhungana showcased a weekly DOGE chart that reflects a breakout from a long-term falling wedge formation, a bullish signal that often leads to price increases. This breakout has led the analyst to project that DOGE might reach $1 in this current market cycle.

Focus on $1 for Dogecoin

The $1 target is a significant milestone for fans of Dogecoin. During the bull market of 2021, DOGE achieved a peak price of $0.73, yet it did not cross the much-anticipated $1 threshold.

This round, multiple analysts suggest that Dogecoin might finally reach the $1 mark. Noted analyst Kevin has identified $1.10–$1.25 as a feasible target, based on Fibonacci retracement levels.

However, experienced market analyst Ali Martinez warns that DOGE needs to break through a substantial resistance level at $0.36 to maintain its upward momentum. At the moment, DOGE is trading at $0.22, reflecting a 1% increase over the past 24 hours.