Dogecoin Teeters on the Edge: A Technical Pattern Hints at Imminent Volatility

Dogecoin’s chart is flashing a rarely seen formation—one that historically precedes explosive price action. Will DOGE rocket or crater? Traders are placing bets.

The ’joke coin that refused to die’ now faces its most critical technical test since 2021. Analysts point to converging trendlines and shrinking volatility—a textbook setup for major breakouts.

Meanwhile, Wall Street quants still can’t explain why a Shiba Inu meme moves billions in market cap. Some things never change.

TLDR

• Dogecoin (DOGE) has 77.9% of its total supply currently in profit, ranking fourth among major cryptocurrencies
• Bitcoin leads with 98.4% of supply in profit, followed by XRP at over 90% and Chainlink at 80.5%
• Technical analysis shows DOGE forming an inverse head and shoulders pattern on the 1-hour chart
• The pattern suggests potential price targets of $0.239 and $0.25 if breakout occurs above $0.228 resistance
• DOGE is currently trading at $0.2245 after declining 6.11% over the past seven days

Recent data from Santiment shows that 77.9% of Dogecoin’s total supply is currently in profit. This metric tracks tokens based on their last transaction price compared to current market value.

The figure places DOGE fourth among major cryptocurrencies in terms of profitable supply distribution. Bitcoin leads the pack with 98.4% of its supply in profit, reflecting its recent all-time high exploration.

XRP holds second place with over 90% of supply in profit, despite limited recent growth in this metric. chainlink ranks third at 80.5%, while Ethereum lags behind at 71.5%.

💸 Percent of Total Supply in Profit is a straightforward metric that shows how much of a cryptocurrency’s current circulating supply is held at a profit—meaning the coins were bought at a lower price than they’re worth today. Currently, some notable top caps’ supply in profit… pic.twitter.com/QU3sGrtV07

— Santiment (@santimentfeed) May 28, 2025

Pattern Formation Suggests Short-Term Bullish Potential

Technical analysis has identified an inverse head and shoulders pattern on DOGE’s 1-hour chart. The pattern consists of three troughs, with the central one forming the deepest point on May 25th.

Crypto analyst Klejdi Cuni highlighted this formation as a potential short-term bullish reversal signal. The pattern’s completion depends on breaking above the neckline resistance at $0.228.

DOGE Poised To Resume The Bullish Trend – #DOGEUSDT @tradingview #bitcoin
Dogecoin is forming an inverse head and shoulders pattern, a classic signal of a possible trend reversal.

In this case, it’s a short-term setup due to its smaller scale on the chart.

If the price breaks… pic.twitter.com/REI7F2WO3C

— KLEJDI CUNI (@TradingPuzzles) May 27, 2025

The right shoulder developed between May 23 and May 24, creating what appears to be a smaller-scale formation. This makes the pattern more relevant for short-term trading opportunities rather than long-term moves.

DOGE recently tested support around $0.215 before establishing higher lows. These firmer support levels have contributed to the pattern’s development.

Price Targets and Key Levels

If the pattern confirms with a breakout above $0.228, the first target sits at $0.239. This level previously acted as support on May 22 before breaking down and later serving as resistance.

The secondary target reaches $0.25, which WOULD represent a full recovery to DOGE’s most recent local peak in May. A successful move to this level could signal the start of further upside momentum.

Volume confirmation will be crucial for any breakout attempt above the neckline resistance. Without sufficient buying interest, the pattern may fail to deliver expected results.

The analysis suggests a step-wise movement where initial breakout leads to consolidation before a secondary push toward $0.25. However, failure to hold above the breakout zone could weaken the bullish outlook.

A breakdown below the right shoulder around $0.222 would invalidate the pattern. Such a MOVE could lead to retesting the $0.21 support level established during recent lows.

Supply Distribution Implications

The high percentage of supply in profit across major cryptocurrencies reflects recent market strength. When large portions of supply show unrealized gains, selling pressure can increase as investors look to realize profits.

This dynamic creates potential resistance for further price advances. However, strong demand can absorb profit-taking activity and support continued upward movement.

DOGE’s position with 77.9% of supply in profit suggests room for growth compared to Bitcoin’s near-maximum level. Lower profitability percentages can theoretically provide more upside potential if market conditions align favorably.

The current consolidation around $0.22 reflects this balance between profit-taking pressure and buying interest. Market participants appear to be evaluating whether to realize gains or hold for potential further advances.

Dogecoin has declined 6.11% over the past seven days, bringing it into negative territory for the weekly timeframe. The coin currently trades at $0.2245 as technical patterns suggest potential for short-term recovery toward $0.25.