Date: Sat, May 31, 2025 | 06:30 PM GMT

The cryptocurrency market witnessed a sharp pullback recently, dragging major tokens into the red. Bitcoin (BTC) briefly dropped to around $104K, while Ethereum (ETH) slipped to $2,500, down from recent highs of $111K and $2,700 respectively. This broad correction impacted many memecoins—including Dogecoin (DOGE).

DOGE saw a double-digit weekly decline of over 15%, trimming its monthly gains to just 6%. But despite the weakness, technical signs suggest that DOGE might be setting up for a strong comeback.

Source: Coinmarketcap

Power of 3 in Play?

Zooming into the 4-hour chart, $DOGE appears to be following a classic “Power of 3” setup — a price pattern that unfolds in three key phases: Accumulation, Manipulation, and Expansion.

Accumulation Phase

From around May 11 to May 31, DOGE traded sideways in a tight range between $0.25 and $0.21, forming the accumulation zone. This phase is marked by indecision, where buyers and sellers battle for control — and smart money quietly builds positions.

Dogecoin (DOGE) 4H Chart/Coinsprobe (Source: Tradingview)

This entire range is highlighted by the shaded gray box in the chart. Repeated price rejections at both the top and bottom of the range reflect market compression, often the calm before a major move.

Manipulation Phase

On May 31, DOGE sharply broke down below the range, falling to as low as $0.189. This move likely triggered stop-losses and panicked selling — textbook characteristics of the manipulation phase.

This dip may have been designed to shake out weak hands before a potential bullish reversal. If DOGE can hold the current support zone around $0.19, it may mark the bottom of the manipulation phase and the beginning of a bullish reversal.

What’s Next for DOGE?

If DOGE manages to reclaim the $0.21 level, it could mark the transition into the expansion phase. A confirmed breakout above the upper range boundary at $0.25 would further strengthen the bullish case.

The projected upside target based on the pattern sits around $0.32, suggesting a potential rally of 67% from current levels.

However, it is also important to take note that this pattern is still developing, and traders must wait for confirmation — at least a move near $0.21 — to seriously consider any upside momentum. A failure to reclaim this level could invalidate the setup and lead to further downside.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.