Key Takeaways
Why is Dogecoin gaining attention?
DOGE flashed a TD buy signal while defending $0.24 support, hinting at short-term recovery.
What levels should DOGE traders watch next?
DOGE faces $0.29 resistance; a breakout could target $0.50, while failure risks a retest of $0.21 support.
Dogecoin [DOGE] flashed a TD buy signal on the 23rd of September after heavy selling pressure drove the price lower. Such signals often appear near market bottoms and can precede reversals.
At the same time, DOGE defended its $0.24 support, giving traders a case for short-term recovery.
Market participants appear to be watching for confirmation as further buying pressure builds.
Can consolidation inside the triangle lead to a breakout?
DOGE consolidated within an ascending triangle, with resistance near $0.29. Typically, such a structure points toward a potential bullish breakout if momentum builds.
The pattern reflected higher lows forming against a static resistance, showing that buyers were gradually stepping in.
If DOGE broke above $0.29 with strong volume, the price could move toward $0.50. By contrast, rejection at resistance might trigger a retest of the support trendline near $0.21.
Source: TradingView
Stock-to-Flow ratio spikes
An unusual development in Dogecoin’s metrics was the sharp surge in its Stock-to-Flow Ratio to 246, which signals tightening supply conditions.
Historically, sudden jumps in this ratio often align with strong upward price movements as scarcity becomes more pronounced.
Still, sudden spikes could be temporary anomalies and, of course, add another layer of bullish sentiment. And so, traders must carefully monitor whether the elevated ratio holds.
If it does, DOGE could be primed for stronger medium-term gains.
Funding Rates remain resilient despite volatility
Funding Rates on Binance remained positive at 0.002% despite volatility, highlighting that more traders held long positions. This indicated speculative appetite for continued gains.
This aligns with the broader picture of optimistic sentiment but also introduces risks. Crowded long trades can amplify volatility if momentum falters, potentially triggering liquidations.
However, as long as Funding Rates hold steady while price consolidates, the market structure supports bullish continuation.
To sum up, Dogecoin now shows early signs of strength with the TD buy signal, positive Funding Rates, and a Stock-to-Flow spike reinforcing momentum.
The triangle pattern remains the battleground, with $0.29 as the key level.
A breakout could open the path toward $0.50, while failure to sustain momentum risks another retest of lower support near $0.21.
