Dogecoin is trading at around $0.21 at the time of writing, with a daily trading volume of approximately $3.1 billion. The coin has decreased by 2% in the past 24 hours and nearly 14% over the week. Despite the decline, there are signs that a price surge is imminent.

Cryptocurrency analyst Crypto Zeinab points out a rounding 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 potentially $0.80 by the end of the year. A similar setup in 2024 led to a price increase from $0.18 to $0.49.

A unique perspective from Galaxy shows that DOGE is continuing its long-term cycle with phases of accumulation and breakout. Since 2014, this meme coin has repeated a sideways trading structure, followed by rapid price surges, and then corrections back to lower price levels.

According to Galaxy, DOGE is in its third major accumulation phase, similar to the price increases in 2017 and 2021. Price action on the monthly chart shows steady growth along support levels, which is often an early stage before the overall market continues an upward trend.

Concerns about security and whale activity

DOGE is facing pressure after the Qubic blockchain community voted to redirect hash power to Dogecoin in preparation for a potential 51% attack. Qubic had previously targeted Monero, raising concerns about similar breaches. This news coincides with a weakening futures market, as DOGE futures contracts opened down 4% to $3.23 billion, according to data from Coinglass.

Even with these risks, accumulation activity continues. Large holders added about 680 million DOGE in August, indicating that whale investors are positioning for a long-term stance despite short-term volatility.

Expand mining activities through mergers

In corporate news, Thumzup Communications Group, 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 about 2,500 ASIC miners and is expected to increase capacity by the end of this year. It is predicted that this merger will become the largest Dogecoin mining network globally, enhancing the industrial-scale infrastructure of the network.

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