Dogecoin (DOGE) has shown strong momentum in early May, recording a price increase of more than 12% in the past week. This performance follows a broader recovery across the cryptocurrency market, spurred by Bitcoin’s (BTC) breakout above the $103,000 level. As speculative interest returns, DOGE is now attracting attention from both retail and institutional investors.

At the time of reporting, the total cryptocurrency market capitalization had climbed more than 24% in the past 24 hours, pushing the market to approximately $70 billion. This upswing reflects renewed investor confidence and increasing inflows across both centralized and decentralized finance ecosystems.

Network Fundamentals Support Growth

Dogecoin’s performance is not purely speculative. It is supported by a resilient and secure blockchain infrastructure built on a proof-of-work consensus mechanism, similar to Bitcoin. This technical foundation has made DOGE a serious contender in the digital asset space, helping it attract significant institutional investment interest.

Backing from high-profile figures in the tech sector, most notably Elon Musk, has added a layer of mainstream appeal. Further strengthening Dogecoin’s position is the expectation that the U.S. Securities and Exchange Commission (SEC) may approve spot Dogecoin exchange-traded funds (ETFs) by the end of 2025.

Recent on-chain analytics suggest that large holders—often referred to as “whales”—have significantly increased their DOGE accumulation, further validating the bullish sentiment surrounding the asset.

House of Doge Accelerates Development

Adding to the optimism, the blockchain infrastructure firm House of Doge has committed $1.8 million in fresh capital to accelerate Dogecoin’s development. The investment aims to enhance transaction speeds and make the network more efficient and user-friendly. This strategic move could improve the asset’s long-term utility and expand its adoption across real-world payment systems and decentralized applications.

Technical Analysis: Key Price Levels to Watch

From a technical perspective, Dogecoin has maintained a strong upward trajectory over the past two years. After finding solid support at the 200-week Simple Moving Average (SMA), DOGE recently bounced back above the 50-week SMA, indicating renewed bullish momentum.

If the price continues to close above the crucial $0.21 resistance level, analysts suggest that a rally toward the next target at $0.26 could follow in the short term. A more extended move could push the asset toward $0.45, particularly if volume remains strong and broader market sentiment continues to improve.

Dogecoin’s current fully diluted valuation stands at approximately $30.5 billion, reinforcing its position as one of the leading digital assets by market capitalization. The recent price action also confirms a successful breakout from a long-term correction phase, with technical indicators pointing to sustained upside potential.

Outlook for May and Beyond

As institutional interest grows and technical indicators remain favorable, Dogecoin appears well-positioned for further gains in the coming weeks. While volatility is expected to remain part of the landscape, the combination of strong fundamentals, increasing developer activity, and potential regulatory support offers a solid backdrop for further appreciation.

The coming days will be critical. If Dogecoin maintains its position above $0.21 and builds momentum, it could be on track to test $0.26 and potentially $0.45 before the end of the quarter. However, traders and investors should monitor volume trends and key moving averages for signs of either continued strength or early signs of reversal.