Dogecoin (DOGE) is showing recovery signs as a recurring long-term floor pattern reemerges. Improving momentum indicators suggest selling pressure may be easing, while whale accumulation and stronger open interest add market activity. Traders are watching whether DOGE can establish a durable base and sustain its recovery.
Dogecoin Revisits a Long-Term Floor Pattern
Dogecoin (DOGE) is attracting renewed attention as traders assess whether its current consolidation could mirror previous long-term accumulation phases.
Crypto analyst Trader Tardigrade highlighted a recurring monthly-chart structure, noting that DOGE historically formed extended price floors before entering powerful upside moves during earlier market cycles.
Source: Trader Tardigrade’s X Post
According to the analyst, comparable floor formations emerged in 2015, 2019, and 2022, with each period followed by significant price expansion.
Trader Tardigrade suggests DOGE may now be developing another similar base, and an explosive breakout could push the price to $12, although historical patterns remain a technical thesis and cannot guarantee that future market conditions will produce the same outcome.
Also Read: DOGE Price Eyes $0.093 Rally as Ascending Channel Supports Recovery
DOGE Price Faces Volatility After September Rally
Dogecoin’s shorter-term chart shows a volatile price structure. According to the TradingView chart analysis, DOGE declined toward $0.08000 in late August before staging a sharp recovery.
The rebound accelerated into early September, pushing the price toward approximately $0.09500 around September 5. However, the advance failed to develop into a sustained uptrend as selling pressure returned.
Source: TradingView
DOGE subsequently moved lower and briefly traded below $0.07800 before finding modest support. The recovery lifted the price back toward $0.081116, highlighting some stabilization after the recent decline.
Despite remaining below the September peak, this rebound could offer traders an early indication of whether selling pressure is beginning to ease.
RSI and MACD Show Early Momentum Improvement
Technical indicators on the four-hour chart are turning more constructive. The Relative Strength Index (RSI) stands at 43.53, keeping DOGE below the neutral 50 level while remaining above deeply oversold territory.
The chart also shows a recent bullish RSI divergence, suggesting downside momentum may be weakening as price holds near recent lows.
The MACD indicator gives a buy signal due to the newly formed bullish cross and an increase in green bars above zero. It is possible that buyers are starting to gain strength again after the downtrend.
However, it is also important for traders to analyze other factors along with these indicators, such as price structure and volume.
Rising Open Interest Points to Increasing Positioning
The derivatives market of Dogecoin is witnessing mixed signals with a reduction in trading volume alongside an increase in leveraged positions.
According to data from CoinGlass, there is a 22.92% drop in derivatives volume to $1.20 billion. This indicates low trader participation in comparison to the previous time frame.
Source: Coinglass
While open interest grew by 2.33% to reach $1.23 billion, it is clear that traders are maintaining their leveraged bets regardless of the lower volumes being recorded.
The combination of low volume and higher open interest puts DOGE in an interesting short-term position where a strong move backed up by higher volumes would validate its participation.
Whale Accumulation Adds Momentum to Outlook
The actions of whales are now being incorporated into the overall story of Dogecoin. According to data pointed out by Dogegod, whales bought an additional 210 million DOGE, which amounts to around $20 million in value.
The activity of large players can affect market sentiment, especially when there is accumulation at well-defined levels of support. However, trading of whales does not necessarily determine the trend of the market since the large players may have varying time frames.
What Happens Next?
There are thus several elements that traders will be looking at when considering DOGE: the long-term floor found by Trader Tardigrade, the rebound in the price, improved momentum signals, derivatives positioning, and whales.
If Dogecoin manages to form a solid base and generate interest in the spot market once again, the focus might then turn to seeing if the consolidation seen at present will form a bigger trend. Until that time, the past floor theory is a method used in analyzing the structure of the market.
Also Read: Dogecoin Price Eyes $0.093 as Whales Accumulate DOGE
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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