Dogecoin Eyes $0.20: The Bull Case for a Meme Coin Revival

Dogecoin’s chart flashes its first bullish signals in months—here’s the path to reclaiming its $0.20 glory days.

Key levels to watch: A clean break above $0.15 could trigger FOMO buys, while whales accumulating at $0.12 suggest institutional irony is alive and well.

The meme coin that Wall Street still won’t take seriously now faces its make-or-break moment. Time to see if ’number go up’ still works in 2025.

Source: X\Ali

‘Subdued’ network activity?

Despite Dogecoin’s ongoing price efforts, on-chain activity remains relatively muted compared to historic levels. In fact, Santiment’s data revealed that daily active addresses stood at 62,588, while transaction counts hovered around 61,411.

Although these figures show slight improvements in recent days, they remain significantly lower than the major network spikes recorded in late 2024. Therefore, the subdued network activity could mean that broader retail participation is still lagging behind. 

Source: Santiment

At press time, Dogecoin’s MVRV ratio had a value of 27.25%, offering important insights into holder behavior. Here, a moderate profitability level indicates that on average, investors are still comfortably in profit but not in an overheated state that typically triggers mass selling. 

Historically, extremely high MVRV values above 50% correlate with sharp corrections. Therefore, the moderate readings might ease immediate concerns about aggressive profit-taking. 

Supply dynamics – Stock-to-flow spike points to increasing scarcity

Another encouraging development seemed to emerge from Dogecoin’s supply-side metrics, with the stock-to-flow (S2F) ratio jumping sharply to 64.00. 

The S2F model measures the ratio between circulating supply and new issuance, meaning the higher the value, the scarcer the asset becomes relative to inflation. 

A sharp rise in S2F generally means improving scarcity fundamentals, which historically aligns with long-term price appreciation.

Source: Santiment

Sentiment within the derivatives market provided additional confirmation of Dogecoin’s improving setup. Data from Binance showed that 71.33% of DOGEUSDT perpetual accounts were positioned long, compared to only 28.67% on the short side. 

This translated to a long/short ratio of 2.49, highlighting traders’ growing confidence in further price hikes. However, while the dominant bullish bias was positive, it also implied that any sudden shifts in sentiment could amplify volatility. 

A setup for a potential major breakout

Dogecoin’s technical and on-chain metrics collectively strengthened its outlook for a bullish continuation. 

Although network engagement remains cautious, the combination of moderate profitability, heightened scarcity, and dominant long positioning in derivatives markets provides a strong foundation for price appreciation. 

Therefore, securing a decisive monthly close above $0.20 could be the catalyst that propels Dogecoin towards reclaiming higher levels. EVentually, it could target its historical peak near $0.74.