- The Dogecoin price indicates a potential bullish inverted head and shoulder formation, provided buyers manage to defend $0.211 support.
- Market analysts highlight a renewed interest in Dogecoin whales as their transaction count hits a one-month high.
- A rising channel pattern drives a 6-month accumulation trend in DOGE.
- The flattish trend in 100-and-200-day exponential moving averages accentuates a mid-term sideways trend in this memecoin
DOGE, the largest main cryptocurrency by market cap, is down over 8.5% during the Thursday U.S. market hours to trade at $0.224. The selling pressure likely followed Bitcoin as it plunged below the $118,000 mark amid the regulatory and monetary developments in the U.S. market. As the memecoins are naturally volatile, they incur major movements during a fresh change in the market. However, the Dogecoin price shows potential for a bullish rebound amid the increased whale interest and formation of a bullish reversal pattern. Will the dog-themed coin reclaim $0.25?
Dogecoin Whale Activity Bullish Rebound
On Thursday, August 14th, the crypto market experienced a sudden sell-off, as evidenced by Bitcoin’s drop below $180,000 after reaching a new high of $124,517. The bearish momentum followed a recent comment from U.S. Treasury Secretary Scott Bessent, stating that the government is “not going to be buying” Bitcoin for its strategic reserve.
The higher-than-expected U.S. July Producer Price Index (PPI) annual rate of 3.3% indicates a persistent inflationary pressure, which decreases the potential for an interest rate cut in September.
However, for Dogecoin, the intraday sell-off is countered by a renewed interest in high-net-worth investors. According to a recent tweet from market analyst Ali Martinez, the whale transaction count (>1 million USD) has recently hit a one-month high.
This memecoin has been in a correction trend for nearly a month, indicating the recent on-chain data as buy-the-dip sentiment among whales. Historically, an accumulation trend from large investors has bolstered the coin price with renewed recovery and major reversals.
Dogecoin Price Eyes Bullish Reversal Amid Inverted Head and Shoulders Pattern
With today’s price drop, the Dogecoin price currently trades at $0.224 and holds its market cap at $33.77 billion. If the bearish momentum persists, the price could plummet another 5% and seek support at the $0.211 level. The horizontal floor coincides closely with the 100-and-200-day exponential moving average, creating a high rate of interest for buyers to recoup the bullish momentum.
If the support holds, this memecoin will also maintain its bullish reversal pattern of inverted head and shoulders in the 4-hour time frame chart. The pattern resembles an upside-down “head” with two smaller “shoulders” on either side, forming a V-shaped recovery.
If the pattern holds true, the Dogecoin price could drive a strong rebound to the $0.26 mark and challenge the pattern’s neckline resistance for a breakout. The post-breakout rally could push the price another 10% before hitting the next significant resistance of the rising channel pattern at $0.28.
Since March 2025, the coin price has been resonating within the two parallel trendlines of this pattern, driving a steady sideways trend with a slight upward incline. The coin price reversed thrice from the overhead resistance trendline and twice from the bottom one, validating how strongly the pattern influences DOGE’s potential direction.
An anticipated surge to the pattern’s upper boundary could provide buyers with an opportunity for the bullish breakout and exit this long accumulation phase.
Also Read: Bitcoin Price Targets $132k With Next Breakout, But There’s a Catch