Crypto Sat recently shared technical analysis on Dogecoin on X, pointing out that the asset is showing signs of accumulation after a significant pullback. According to the analyst, the 2-hour chart is starting to form a potential double bottom pattern. If this structure is confirmed, it could indicate that Dogecoin will rise again, attracting the interest of short-term traders and long-term holders.
The moment of truth for Dogecoin: The battle for the neckline is approaching.
As noted by Crypto Sat, Dogecoin currently exhibits characteristics of a double bottom pattern, which is a typical reversal pattern that may indicate a shift in momentum. The first bottom formed around $0.170, following a significant price decline, with buyers initially stepping in to defend this area.
Not long after, DOGE fell again, testing the same support area for the second time and forming a higher low structure, indicating that bearish pressure is weakening and early accumulation is occurring.
The key area to watch is the neckline resistance level, located in the $0.198 to $0.200 range. Crypto Sat emphasized that a breakout above the neckline would strongly confirm a shift in market sentiment. If bulls successfully break through, it could open the door to sustained upward movement as traders' confidence in the reversal pattern gradually increases.
Here are the key signals to watch.
In his analysis, Crypto Sat outlined several key signals to watch as Dogecoin's price action tightens. He pointed out that an early bullish signal is the increase in volume at the second bottom, which is a subtle yet important clue indicating that buyers may be entering with increasing conviction. Volume often leads price, and this rise could mark the beginning of a new upward momentum.
The key resistance level to watch is the resistance zone near $0.200. A strong breakout above this resistance zone could trigger a technical shift, paving the way for further rises to the $0.220 to $0.230 range. This move would confirm a double bottom pattern and could attract more bullish investors as confidence grows.
However, if the price fails to break through the neckline, the support level around $0.165 will become the next critical level. A rebound from this area would maintain the pattern, but a breakdown below this zone could invalidate the pattern and suggest further downside risk.
Crypto Sat shared his personal view that Dogecoin might be preparing for a breakout, but he advised traders to remain patient. "Let the neckline determine the next big move," he suggested, emphasizing the importance of observing confirmation signals before taking aggressive actions.
