3 Reasons Dogecoin Price Could Reach $0.40 in May 2025
Dogecoin price eyes massive gains to $0.40 this month amid a bullish formation on the weekly chart. Meanwhile, a key on-chain metric and the increasing odds of a DOGE ETF approval are fuelling a positive market sentiment that could trigger a surge in buy-side pressure. DOGE value today, May 5, has dropped by 2% to trade at $0.169. The meme coin’s volatility is also spiking after being notably low last week. DOGE/USDT: 4-Hour ChartDespite the choppy moves, three factors have aligned and tease towards a price rally for Dogecoin to as high as $0.40, with this upswing expected to occur in the coming weeks. Dogecoin Price Closes a Monthly FVG Gap Dogecoin price is showing signs of strength, according to a recent X post by analyst Polaris.xbt on X who noted that it had closed a monthly FVG gap, and it was now trading within a stable consolidation range that could spark an upward breakout. In his analysis, he stated that the Dogecoin price forecast is positive, and if it can defend support at the bottom range of this consolidation zone, it faces the next major hurdle at $0.22. If it breaks out from this resistance level, it may enter a sustained uptrend past $0.40, which will mimic the DOGE ETF approval rally. Dogecoin Price ChartConversely, if DOGE fails to make a clean breakout from the current consolidation zone and slips, it faces critical support at $0.10, at which point it will have wiped out the entire Q4 rally triggered by President Trump’s election. On-Chain Data Signals DOGE Price Bottom Besides technical analysis, data from Santiment, specifically the Market Value to Realized Value (MVRV) ratio, suggests that the price of Dogecoin may have hit a local bottom, a factor that often precedes an upward recovery. DOGE 365D MVRV RatioAt press time, the 365-day MVRV had plunged to -37%, indicating that most holders are underwater, which suggests that the top meme coin is undervalued and may make a strong upward trend. Doing so will mirror past patterns, like in the second half of 2024, whereby DOGE went on a parabolic rally after the MVRV signalled a bottom. DOGE ETF Approval Odds Hit 64% The high approval odds for a spot Dogecoin ETF might also catalyze the next bullish break for price, as Polymarket reveals that the approval odds now stand at 64%. Meanwhile, Bloomberg analysts stated that there is an 80% chance of a DOGE ETF approval for the three issuers that have filed for the product. PolymarketAs optimism towards the approval of this product increases, Dogecoin is likely to make an upward breakout in May 2025. Moreover, as Coingape recently reported, DOGE will rally significantly if it captures 30% to 50% of spot Bitcoin ETF inflows. Summary Dogecoin price is on the verge of a major rally as three signals suggest that the meme coin may reach $0.40 in May 2025. The closure of a monthly FVG gap, the 365-day MVRV ratio, and the increased odds of a spot DOGE ETF approval hint that it may have hit a local bottom and now eyes gains. Frequently Asked Questions (FAQs) Dogecoin price can reach $0.40 in May 2025 as technical analysis and the MVRV ratio suggest that the market sentiment towards it is positive. The high spot ETF approval odds may also stir a positive market sentiment. The MVRV ratio shows that Dogecoin price has hit a local bottom, and if this dip mirrors previous trends, DOGE might rally soon. There is a 64% chance that the SEC will approve a spot DOGE ETF per Polymarket bets. Bloomberg also has an 80% chance of approval. muthoni Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets. Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.