Dogecoin (DOGE) is signaling the potential end of its recent correction, as several technical indicators and renewed interest from large investors hint at a shift in momentum. The cryptocurrency dropped sharply after reaching a peak of $0.1007 on August 22, falling over 17% and testing the $0.0828 level. Despite the retracement, analysts are watching for signs of a bullish reversal as DOGE trades near a historically significant demand zone.
Technical indicators suggest a reversal
Noted crypto analyst Ali Charts emphasized the importance of the Tom DeMark Sequential indicator on Dogecoin’s daily chart. According to this model, a new buy signal could soon emerge, which often reflects exhaustion in prevailing trends and the waning of selling pressure.
While a Tom DeMark buy signal does not guarantee an immediate price recovery, its appearance after a sustained decline may suggest that bears are losing control. Traders are expected to look for clear evidence of renewed buying before considering the correction over.
A morning doji star candlestick pattern is also forming on DOGE’s daily chart. This classic reversal formation generally appears after a prolonged downturn, suggesting a transition from negative sentiment to uncertainty and, potentially, a return of buyer dominance.
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Technical signals are aligning with on-chain activity, as the Tom DeMark Sequential indicator and the emergence of a morning doji star pattern highlight that selling pressure may be fading.
Whale accumulation underpins support
On-chain data reveals that major holders, sometimes referred to as whales, accumulated up to 400 million DOGE within the last five days. This latest round of buying coincided with DOGE’s dip near support, indicating that large investors took advantage of lower prices to increase their positions.
Such accumulation activity gains importance when it occurs at or near an established support level. If whales continue buying at these levels, they could offset selling pressure and provide additional liquidity if broader market sentiment improves.
Analysis shows that $0.0813 remains a critical support region for DOGE, with 35 billion tokens previously transacted in this area. This concentration indicates that market participants have historically viewed this zone as a key accumulation point.
Outlook if support holds
Dogecoin’s prospects in the short term depend on whether buyers can maintain the $0.0813 support. If bulls hold this zone, the reversal formation remains valid. Failure to sustain above this level, however, would undermine the current bullish pattern.
Should market stability return and buyer interest strengthen, DOGE could target upside resistance levels at $0.1552 and $0.1774. Achieving these targets would still require the meme coin to overcome intermediary resistance barriers in its path.
In volatile crypto markets, even a single Federal Reserve decision or an unexpected altcoin listing can rapidly shift trend dynamics. As a result, many traders are turning to consolidated, privacy-first tools like CryptoAppsy, which provide real-time charts, smart price alerts, coin-specific news, and critical macroeconomic data on a single platform, all without requiring an account. This approach helps investors monitor key levels, such as DOGE’s pivotal $0.0813 support, and respond swiftly to changing conditions without switching between multiple applications.
The emerging combination of favorable technical signals and intensified whale accumulation is keeping the focus on whether DOGE can hold its crucial support and potentially reverse its latest slide.
Sustaining the price above this crucial support is essential for maintaining the reversal pattern, while a drop below $0.0813 would weaken the bullish case for DOGE.
