Dogecoin Gains Momentum Amid Rumored Layer‑2 Plans

Technical analysts including Trader Tardigrade are flagging bullish setups for Dogecoin — Tardigrade notes a potential double-bottom on the 3‑day chart, a bullish weekly setup and a daily higher‑high/higher‑low, while a 4‑hour trendline is being watched for a short‑term test. Price is consolidating around the $0.20 psychological level with immediate resistance near $0.21–$0.218; a decisive breakout on volume could accelerate gains, whereas a drop below roughly $0.17 risks testing support near $0.14. On‑chain and market data show rising engagement: large whale transfers have hit liquidity, trading volumes have spiked, derivatives open interest is up about 9% with roughly 70% of traders long, and DOGE is up about 43% year‑to‑date. Fundamentals temper the outlook: roughly 151.5 billion tokens are outstanding with about 5 billion new DOGE issued yearly, throughput is limited (~30–40 TPS), and real‑world utility remains constrained. A rumored layer‑2 initiative that could add scaling or burning mechanics is being discussed as a potential material tailwind. Traders are advised to await volume confirmation, watch the 4‑hour trendline and key support/resistance levels, and manage risk given DOGE’s history of volatile, sentiment‑driven moves.