Peter Smith
After experiencing a modest decline in late August, Dogecoin has demonstrated remarkable resilience by establishing solid support around the $0.21 level. This recovery comes at a crucial time as technical patterns begin to align with positive on-chain data, creating an interesting setup for potential upward movement in the popular meme cryptocurrency.
DOGE Price Finds Stability at $0.21 Support
Dogecoin bounced back impressively after dropping nearly 5% in late August, finding its footing around $0.21. This level has turned into solid short-term support, stopping any further slides and creating a foundation for what could be the next move up.
Crypto trader @kralice pointed out that DOGE's ability to hold this area is a good sign for bulls. Her analysis suggests that this consolidation phase could be setting up for another leg higher, especially if buyers can push through the resistance levels above.
DOGE Price Technicals: Cup-and-Handle Pattern in Play
The chart shows a textbook cup-and-handle formation, which is typically a bullish sign that often leads to strong breakouts. The rounded bottom part shows accumulation happening, while the smaller pullback represents a brief pause before the next move up.
If this pattern works out, DOGE should first try to break above $0.23 resistance. A clean break through this level would likely spark momentum toward $0.30, which would be a nice 35%+ gain from current support levels.
Adding to the bullish case, on-chain data shows that institutions bought up 680 million DOGE in August, even while the market was under pressure. This steady buying shows real confidence in DOGE's long-term prospects and supports the idea that higher prices could be coming.
When you combine institutional demand with solid technical patterns, it's historically been a recipe for significant moves in Dogecoin. Many analysts think this combination could be the spark for the next breakout.
Peter Smith
