Dogecoin (DOGE) is currently facing short-term selling pressure, trading near $0.2200 after falling 15% from this month’s peak of $0.2600. However, beneath this decline, technical indicators and on-chain data suggest a potentially bullish reversal may be underway. From whale accumulation to key chart patterns, signs are emerging that DOGE could be gearing up for a major move.
Dogecoin Whales Are Accumulating
A critical metric in cryptocurrency market analysis is whale behavior, which often precedes notable price movements. According to Santiment, large investors holding 1M–10M DOGE have increased their holdings to 10.56 billion coins, up from 10.48 billion on May 10. Likewise, wallets with 100M–1B DOGE now hold 25.86 billion coins, compared to 25.53 billion earlier this month.
This steady accumulation during a dip indicates that whales may be positioning for a bounce, echoing a classic accumulation pattern seen before market rallies. Such behavior often reflects sophisticated strategies that anticipate trend reversals before the broader market reacts.
Bullish Flag Pattern Signals Breakout Potential
From a technical standpoint, the daily chart reveals the formation of a bullish flag pattern a classic continuation setup known to precede sharp upward breakouts. Prior to this, Dogecoin also formed an inverse head and shoulders pattern, with the “head” at $0.1298 and “shoulders” around $0.1520, indicating a completed base structure.
Additionally, DOGE has successfully moved above its 50-day and 100-day Exponential Moving Averages (EMAs) a bullish alignment often seen as a precursor to upward momentum.
If the flag pattern resolves as expected, the next logical resistance is the November 2024 high of $0.4820, representing a potential 120% gain from current levels.
Weekly Chart Shows Megaphone Formation
Zooming out to the weekly chart, Dogecoin has formed a megaphone pattern, characterized by two diverging trendlines stretching from January 2022 (support) to January 2023 (resistance). This pattern often reflects growing market volatility and typically resolves in the direction of the prevailing macro trend currently upward for DOGE.
Should momentum build, a breakout above $0.4820 could open the door for a test of the psychological $1.00 level, a milestone not seen since the 2021 bull run.
Final Outlook: Cautious Optimism with Bullish Undertones
While Dogecoin’s short-term outlook appears bearish due to broader market risk-off sentiment, whale accumulation, strong technical patterns, and key moving average support suggest that a powerful rebound may be brewing. Traders are advised to watch for confirmation of a breakout from the current consolidation zone, particularly with an eye on volume and broader crypto sentiment.
If the bullish scenarios play out, Dogecoin could soon be back on a path toward $0.48 and possibly $1 marking a significant turnaround from its recent lows.
