The Dogecoin price has captured attention due to an unexpected recovery in July 2025. Following Bitcoin's achievement of a new all-time high, DOGE has also shown significant growth, breaking key technical patterns.
Technical Breakout: Falling Channel Breached In Dogecoin
On the daily timeframe, Dogecoin price revealed a well-defined falling channel that dominated its price action since early 2025. The coin had tested lower support near $0.15 multiple times and finally showed a decisive breakout above the upper trendline of the falling wedge pattern this week. Currently, Dogecoin is trading near $0.198 with a market cap of $30.03 billion. The price has crossed above both the 20-day EMA and 50-day EMA, indicating a key bullish sign.
Strong Bitcoin Correlation Driving Rally
A major catalyst behind DOGE’s current momentum is its 0.69 price correlation ratio with Bitcoin over the last 30 days. As BTC entered a price discovery phase after surpassing $118,000, DOGE mirrored this optimism. Altcoins historically tend to advance following a strong Bitcoin move, and a similar pattern is currently occurring, with DOGE price breaking its long-term resistance zones.
Political Sentiment Boost: DOGE in Defense Headlines
In a surprising development, U.S. Secretary of Defense Pete Hegseth mentioned the DOGE Department in a July 11th announcement post on X related to national defense manufacturing. He clearly stated that the U.S. is ramping up domestic drone production to match rising geopolitical threats. This not only added visibility to Dogecoin but also reinforced its status as a meme-backed asset, fueling retail sentiment.
The price increase of Dogecoin in July 2025 is driven by both technical factors and external political statements. Discussions about the potential for a supercycle continue, generating interest from both investors and the general public.
