Dogecoin, the popular meme cryptocurrency, has been experiencing some interesting developments recently. Currently trading at $0.1739, the coin saw a 2% decrease due to ‘Liberation Day’ tariffs. However, it is now sitting at a critical support level that has been holding for seven years. This support is defined by a rising parallel channel that has influenced Dogecoin’s price action since 2018.
Technical analysis by Ali Martinez indicates that a buy signal has been issued by the TD Sequential indicator on the weekly chart. This pattern has historically preceded major price reversals in the cryptocurrency market. Additionally, the buy trigger coincided with Dogecoin testing the lower line of its channel, creating a high-probability setup with two independent signals aligning. On-chain activity also seems to support this bullish view.
Whales have been accumulating Dogecoin, acquiring 220 million coins between March 11 and 25. This net inflow represented 0.17% of the total circulating supply and occurred as Dogecoin rose from $0.15 to $0.19, coinciding with the channel support that has sparked previous rallies. Wallets containing 1M–10M DOGE saw a surge in activity throughout the month, indicating increased interest from large traders.
Funding rates for Dogecoin turned positive near the recent low, suggesting a possible market reversal. Data shows an inverse relationship between funding rates and price trends, with spikes in negative funding correlating with sharp declines in Dogecoin. Positive funding periods, on the other hand, saw temporary price stabilizations, indicating underlying long interest from larger traders.
If historical behavior repeats itself, Dogecoin could target the channel midpoint at around $0.65, reflecting a gain of approximately 270% from its current price. However, if Dogecoin fails to hold the $0.16 support, previous patterns indicate a potential 26% to 44% drawdown. These downside projections are based on past “death cross” scenarios that triggered breakdowns from similar positions. Traders and investors will need to closely monitor these technical and on-chain indicators to navigate Dogecoin’s future price movements.
