Dogecoin remained steady near $0.0848 on Monday, as the cryptocurrency held its ground within an ascending price channel following a recent test of key support between $0.080 and $0.082. Analysts pointed to $0.093 as the next major resistance level if current momentum continues.
Large holders buy the dip, technical buy signals appear
During the price pullback, major wallet holders collectively purchased more than 240 million DOGE over the past week, according to on-chain data compiled by Ali Charts. This wave of accumulation indicates that large investors may be positioning for a potential rebound, taking advantage of prices at the lower boundary of the channel.
Dogecoin is a leading memecoin that was originally created as a lighthearted alternative to Bitcoin, but it now ranks among the most heavily traded digital assets globally.
Ali Charts, a well-followed crypto market analyst, detected a new TD Sequential buy signal on Dogecoin’s four-hour chart at approximately $0.0839. In recent months, the same technical pattern has preceded rallies between 2.71% and 11.25%, with the latest three instances resulting in notable gains.
Technical analyst Ali Charts noted the emergence of a TD Sequential buy set-up around $0.0839, observing that the last three signals resulted in rebounds of 6.96%, 2.71%, and 11.25%.
The digital asset market as a whole also showed strength, gaining 1.32% to bring total market capitalization to $2.65 trillion. Bitcoin traded near $78,905, Ethereum hovered around $2,532, and XRP changed hands at approximately $1.44 during the same period.
Rising derivatives activity and chart outlook
Dogecoin saw a sharp increase in derivatives trading, with futures volume growing 65% over the period to reach $1.17 billion. Open interest, which tracks outstanding derivatives positions, ticked down slightly to $1.26 billion, signaling heightened trading activity but little growth in new leveraged bets.
Several market indicators point toward a possible shift in momentum. The MACD histogram on the four-hour timeframe turned slightly positive at 0.00018, suggesting that bearish pressure may be fading. The Chaikin Money Flow climbed to 0.01, hinting at new capital inflows, while the Relative Strength Index registered near 44, above oversold territory but below bullish levels.
Technical analysts highlighted Dogecoin’s daily price remaining above key exponential moving averages, described as a sign of underlying strength and a potential long-term floor if maintained.
Mini dictionary: TD Sequential, a technical indicator developed by Tom DeMark, is used to identify potential turning points in asset prices by counting a series of price bars. When a buy or sell setup completes, the indicator suggests a possible trend reversal or a period of price retracement.
Key price levels and upcoming events
A clear move above $0.09 would open the way for targets at $0.095 and potentially $0.10, which was the August high. Longer-term resistance sits at $0.113 to $0.114, with $0.176 marked as a distant objective if momentum builds. On the downside, support remains at $0.079. A break below this level could shift focus toward $0.075 and $0.070.
| Price Level | Significance |
|---|---|
| $0.079 | Key support |
| $0.093 | Next resistance |
| $0.10 | August high |
| $0.114 | Major resistance target |
Traders are closely watching Tuesday’s CLARITY Act decision and Wednesday’s US Federal Reserve policy announcement, both regarded as potential catalysts for heightened market volatility. The outcome of either event could spark significant Dogecoin price swings in either direction.
Institution-sized wallets have accumulated more than 240 million DOGE over the last week, signaling growing expectations of an impending price move as key regulatory and central bank meetings approach.
At last check, Dogecoin was trading at $0.0847, marking a 0.78% gain during the previous 24 hours.
