Dogecoin Price Analysis and Forecast: Here are Key Targets to Consider in May

Dogecoin's price has shown a strong correlation with Bitcoin, which is anticipated to experience a bullish surge in May.

On-chain data indicates significant Dogecoin accumulation by large holders in recent weeks.

Bitcoin's recent rally above $103,000 has rekindled fear of missing out (FOMO) among traders, particularly in the memecoin market led by Dogecoin (DOGE). The total cryptocurrency market capitalization has increased by over 24 percent in the last 24 hours, reaching approximately $70 billion. This growth is partly attributed to substantial memecoin liquidity and the robust DeFi and CeFi infrastructure developed in recent years, attracting more speculative traders.

Dogecoin Network Strengthens Fundamentals

Dogecoin, a long-standing memecoin, utilizes the proven proof-of-work consensus mechanism, similar to Bitcoin. This has attracted institutional investors seeking crypto portfolio diversification.

Furthermore, Dogecoin enjoys significant support from Elon Musk and his companies. The potential approval of several spot Dogecoin ETFs by the U.S. SEC before year-end is also a positive factor. Recent on-chain data analysis shows increased Dogecoin acquisition by whale investors.

Key Short-Term Price Targets for DOGE

Technically, Dogecoin has shown an upward trend over the past two years. After successfully rebounding from the 200-week Simple Moving Average (SMA), the price rallied over 12 percent last week, trading above the 50-week SMA.

Consequently, sustained closing prices above $0.21 in the coming days could trigger a short-term rally towards $0.26 and potentially $0.45. The large-cap memecoin, with a fully diluted market capitalization of approximately $30.5 billion, has already broken out of a correction and retested this breakout for confirmation.