$ 0.40 in Sight? 3 Reasons Dogecoin May Climb Another 50% in May 2025

Dogecoin completed its critical monthly price gap, ranging between $0.115 and $0.135 by breaking through an essential resistance area.

On-chain data revealed that medium-sized wallets conducted substantial buying while exchange platforms showed diminished supply in the final days of April.

The prospect of Dogecoin ETF approval has reached a 64% probability level, which is attracting institutional investors and increasing derivatives trades.

The cryptocurrency Dogecoin (DOGE) started May 2025 with noteworthy momentum changes which analysts believe could trigger a near 50% price increase toward $0.40. DOGE initiated May with two promising signal points that stem from technical analysis in addition to on-chain indicators.

The combination of a major closing of monthly Fair Value Gap with increased investor on-chain activity and anticipation for an exchange-traded fund (ETF) approval has established a positive outlook for DOGE. These three events separately form a synchronized opportunity that emerges when market sentiment starts to recover.

Monthly Chart Shows FVG Closure

In April 2025, Dogecoin completed its long-standing monthly fair value gap that began in early 2021. From early 2021 until April end 2025, the FVG existed within the range of $0.115 to $0.135 as it finally closed at that time. Price movement tends to be attracted to existing value gaps, which then causes assets to return toward previously inefficient market values.

DOGE entered this zone of profitability with success while staying above $0.135 which established a potential bullish pattern. Price action performs rapid reactions when long-established FVGs close up especially across high-timeframe length charts including the monthly. The removal of a crucial resistance area allows investors to focus their analysis on blockchain data which supports the recent price increase.

On-Chain Metrics Reflect Accumulation Trend

Blockchain analytics tools show an increasing accumulation trend of DOGE across multiple platforms during the latter part of April. Investors who held between 100,000 and 1 million DOGE units raised their cryptocurrency holdings while DOGE price stayed inside the FVG zone. This category of investors, who held between 100,000 and 1 million DOGE units produced a net increase in the coin supply while exchange supply decreased at this time.

The average transaction volume significantly increased by 18.1% between April 15 and May 1, indicating intensified capital movements in the market. The increase in the number of trades signals employee support for higher prices in line with the market technical signal. During this accumulation stage together with decreased investor sell-offs markets generally progress toward 0.23 - 0.27 - 0.32 - 0.37 - 0.42 - 0.48$.

ETF Approval Odds Now at 64%

Market analysts tracking regulatory sentiment have noted a sharp increase in Dogecoin ETF approval odds, now estimated at 64%. Recent legal developments and broader market industry changes have caused this approval rate to rise from 39% in March 2021.

Research shows a rise in approval likelihood during the period when institutions began to activate interest in meme-based digital assets. From Derivatives markets data we can see that future contracts exhibiting open interest levels about DOGE have grown by 22% during the previous week. New advancements in the ETF process during May might sustain further speculative flow of funds. The combined signals from regulatory measures, technical indicators and blockchain network activity have developed Dogecoin's present rise.