Dogecoin is showing signs of a potential price reversal as it trades near the $0.23 level amid mixed technical signals. Analysts are increasingly suggesting that the meme coin may experience one final pullback to around $0.20–$0.21 before entering a more sustained bullish phase. This correction is attributed to profit-taking behavior and the asset’s overbought conditions, which have been highlighted by several on-chain indicators and market observers [1].
Technical chart patterns, including a double bottom and a cup-and-handle formation, have emerged as key bullish signals. These formations, historically associated with price breakouts, suggest that DOGE could see a move toward $0.36 or even $0.42 if it successfully clears key resistance levels [2]. Ali Martinez, a crypto strategist, has noted that the double bottom pattern could signal a reversal to the upside, while Binance analysts also point to a similar target [3].
Large investors, or “whales,” are accumulating Dogecoin during the dip, which is often seen as a precursor to a price rally [4]. Institutional buying is evident, with a reported purchase of 680 million DOGE at $0.21, reinforcing the belief that long-term holders remain confident in the asset despite broader crypto market turbulence [5].
While Dogecoin remains below the $0.25 psychological resistance level, a break above this threshold would serve as a strong confirmation of the bullish thesis. This level has been identified as a key test of investor sentiment and the coin’s ability to capitalize on the ongoing crypto market rally [6].
Potential catalysts for a breakout include a broader shift in market sentiment driven by Bitcoin’s performance, increased social media attention, and continued support from high-profile figures such as Elon Musk. Moreover, AI-driven models have suggested that favorable selling zones could emerge between $0.32 and $0.45, indicating expected demand surges in the near term [7].
Despite the positive technical outlook, some analysts caution that Dogecoin’s large market capitalization—over $35 billion—could limit its potential for explosive growth compared to smaller altcoins [8]. Nonetheless, the recent 11.17% gain in a single 24-hour period on August 23 demonstrates the asset’s resilience amid broader volatility [9].
If the $0.25 level is firmly established as a support, Dogecoin could begin a more robust bullish phase. However, a failure to hold this level may extend the correction, testing the $0.21–$0.22 range, which has historically served as a key area for either a bounce or a deeper decline [10].
Source:
[1] Coinmarketcap, [https://coinmarketcap.com/community/articles/68abeb717491280cc5b418d6/](https://coinmarketcap.com/community/articles/68abeb717491280cc5b418d6/)
[2] ZyCrypto, [https://zycrypto.com/1-doge-still-in-view-for-dogecoin-but-resistance-remains-a-key-barrier/](https://zycrypto.com/1-doge-still-in-view-for-dogecoin-but-resistance-remains-a-key-barrier/)
[3] U.Today, [https://u.today/dogecoin-rockets-11-in-fed-driven-market-rally-whats-next](https://u.today/dogecoin-rockets-11-in-fed-driven-market-rally-whats-next)
[4] Mitrade, [https://www.mitrade.com/au/insights/news/live-news/article-3-1064300-20250824](https://www.mitrade.com/au/insights/news/live-news/article-3-1064300-20250824)
[5] AInvest, [https://www.ainvest.com/news/doge-0-21-support-level-critical-buy-point-death-trap-2508/](https://www.ainvest.com/news/doge-0-21-support-level-critical-buy-point-death-trap-2508/)
[6] Barchart.com, [https://www.barchart.com/story/news/34357502/analysts-tip-dogecoin-to-tip-0-50-in-the-next-30-days-but-say-this-0-10-crypto-could-get-there-first](https://www.barchart.com/story/news/34357502/analysts-tip-dogecoin-to-tip-0-50-in-the-next-30-days-but-say-this-0-10-crypto-could-get-there-first)
