Dogecoin is trading around $0.21 at the time of writing, with a daily trading volume of approximately $3.1 billion. The coin has declined 2% in the past 24 hours and nearly 14% over the week. Despite the drop, there are signs that a move is imminent.
Cryptocurrency analyst Crypto Zeinab points out a rounded bottom forming along with a converging triangle. The current resistance level is near $0.29, a critical threshold that, if broken, could push DOGE up to $0.49 and possibly $0.80 by the end of the year. A similar setup in 2024 saw prices rise from $0.18 to $0.49.
A unique perspective from Galaxy indicates that DOGE is continuing its long-term cycle with accumulation and breakout phases. Since 2014, this meme coin has repeated sideways trading structures, followed by rapid price increases, then adjusting back to new lows.
According to Galaxy, DOGE is in the third major accumulation phase, similar to the rallies in 2017 and 2021. Price action on the monthly chart shows steady growth along support levels, which is often an early stage before the broader market resumes its upward trend.
Concerns About Security and Whale Activity
DOGE is under pressure after the Qubic blockchain community voted to redirect hashing power to Dogecoin in preparation for a potential 51% attack. Qubic had previously targeted Monero, raising concerns about similar disruptions. This news coincides with a weakening derivatives market, as open DOGE futures contracts fell 4% to $3.23 billion, according to Coinglass data.
Even with these risks, accumulation activity continues. Large holders have added approximately 680 million DOGE in August, indicating that whale investors are positioning for a long-term stance despite short-term volatility.
Expand Mining Through Acquisition
In corporate news, Thumzup Media Corporation, a Nasdaq-listed company, has confirmed plans to acquire Dogehash, a North American mining company focused on Scrypt assets like Dogecoin and Litecoin.
Dogehash owns approximately 2,500 ASIC miners and is expected to increase capacity by the end of this year. This merger is predicted to become one of the largest Dogecoin mining networks globally, enhancing the industrial-scale infrastructure of the network.
