Dogecoin (DOGE) is exhibiting signs of a potential bullish reversal as its monthly chart pattern aligns closely with a significant accumulation phase observed in 2022. Analysts highlighted th
Dogecoin (DOGE) is exhibiting signs of a potential bullish reversal as its monthly chart pattern aligns closely with a significant accumulation phase observed in 2022. Analysts highlighted the emergence of a fresh Tom DeMark (TD) Sequential buy signal, increased activity from large holders, and improvements in technical structure as reasons for cautious optimism regarding DOGE’s near-term direction.
Ali Charts, a well-known cryptocurrency analyst, stated that Dogecoin’s monthly chart recently produced a buy signal from the TD Sequential indicator. This indication suggests weakening selling pressure and hints at the possibility of a broader trend reversal if the current pattern holds through the upcoming monthly candle.
The pattern notably resembles the August 2022 setup for Dogecoin, when an inverted hammer and a subsequent TD buy signal preceded a doji candle formation. This combination ultimately led to a substantial monthly price rebound at the time, though analysts caution there is no certainty history will repeat itself.
Dogecoin is showing key similarities to its 2022 accumulation pattern, with the TD Sequential indicator’s buy signal and an increase in whale accumulation suggesting that selling pressure could be giving way to renewed buying momentum.
Beyond the technical standpoint, on-chain data reflects renewed interest from large holders, popularly known as whales. Data shows that whales have accumulated approximately 430 million DOGE in recent periods, a move interpreted by analysts as an indicator of growing confidence among institutional and large-scale investors.
Mini dictionary: Tom DeMark (TD) Sequential, a technical analysis indicator that identifies potential trend exhaustion and buy or sell signals based on consecutive price patterns, often used to anticipate reversals in cryptocurrency markets.
However, analysts emphasize that whale accumulation alone cannot ensure a bullish trend; technical momentum must also improve for a meaningful shift in market sentiment.
Market participants are closely watching the $0.0813 level, a zone that has acted as strong resistance for Dogecoin in past trading sessions. A monthly close above this level would suggest that bullish investors have regained control, potentially prompting increased buying interest in the near term.
If DOGE manages to break through and establish support at this level, traders may shift their attention to the next significant resistance at $0.177, identified via the Unrealized Price Distribution (URPD) metric as a potential target for further gains.
Resistance LevelStatusNext Target$0.0813Currently tested as resistance$0.177 (URPD)Despite the positive setup, a confirmed breakout above resistance and sustained technical improvements are seen as necessary conditions for a full trend reversal. Dogecoin’s evolving monthly structure, together with the TD Sequential buy setup and formation of a bullish doji, leave investors watching for signs of a pattern resembling the successful reversal from 2022.
If Dogecoin can secure a monthly close above $0.0813, the shift may open the way for a larger move toward $0.177, provided technical momentum continues to build.
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