Dogecoin (DOGE) appears to be waking up. A technical breakout, improving macro trends, and a potentially bullish Elliott Wave pattern are combining to suggest that DOGE may be on the verge of a significant rally—perhaps even a long-anticipated moonshot.

Technical Breakout Signals Reversal

Dogecoin has officially broken out of the descending channel that had been suppressing its price movements since early 2025. This bearish structure, once a ceiling for any rally attempts, has now flipped. Analysts confirm that DOGE successfully retested former resistance—now acting as support—implying a confirmed breakout and signaling a potential trend reversal.

The next key resistance sits at $0.27. Should buying momentum persist, DOGE could climb toward $0.39 or even test $0.43 in the weeks ahead. For now, the $0.17 support zone remains a critical floor for price action. If the bullish structure holds, short-term corrections are likely to remain shallow.

Elliott Wave Suggests More Upside Ahead

Zooming into the short-term price action, Dogecoin’s recent movements align with a classic Elliott Wave setup. The token is currently in what appears to be a micro-corrective phase, consolidating above a key support band between $0.17 and $0.1777. This area previously acted as micro-resistance and has now flipped to support—another bullish sign.

Based on current wave counts, analysts are tracking a potential five-wave impulse move. Wave 3 recently peaked near the 138% Fibonacci extension at $0.196, and if this pattern continues, Wave 5 could lift prices toward the 161.8% extension at $0.206, or even stretch to the 178.6% level at $0.213.

A breakout above $0.185 would likely confirm this bullish continuation pattern. However, a decisive drop below $0.17 could postpone the rally and trigger a temporary pullback. As of now, the correction appears controlled and aligns with the structure of a broader uptrend.

Macro Trends Support the Bullish Outlook

Beyond technicals, Dogecoin’s macro environment is showing favorable developments. One key trend gaining attention is the growing correlation between DOGE prices and the global M2 money supply. M2 includes cash, checking deposits, and easily liquid assets. Analysts have observed that with a 110-day lag, increases in M2 often precede DOGE rallies.

While not an exact science, this macro indicator points to a potential tailwind for cryptocurrencies if global liquidity continues to expand. With many central banks hinting at easing monetary policies and increasing money supply in the months ahead, this correlation could become increasingly significant—especially during the historically bullish summer period.

Although short-term volatility is to be expected, Dogecoin may be entering a favorable window of opportunity where technical breakouts and liquidity expansion align. This unique setup is rare in crypto markets and often leads to accelerated price movements.

What’s Next for DOGE?

Dogecoin has long been a symbol of both community-driven momentum and unexpected market surges. With the current combination of bullish technical signals, support from broader macro trends, and a potential Elliott Wave rally forming, traders are watching closely.

If DOGE can decisively clear $0.27 in the coming sessions, it may trigger a wave of FOMO (fear of missing out) that could propel prices toward $0.39 and beyond. Until then, maintaining support above $0.17 will be essential for bulls to stay in control.