Key Takeaways
The breakout from the triangle pattern, combined with DOGE’s accumulation, suggested that the memecoin may be trying to initiate a rally on the charts.
Dogecoin [DOGE], at the time of writing, was up 7.7% in the last 24 hours. The memecoin’s price charts revealed that DOGE’s volatility declined heavily over the weekend, with its recent gains suggesting that a bullish move may be incoming.
Whale accumulation, rising short-term holder supply, and a breakout from a triangle pattern also helped build the bullish case for Dogecoin.
Examining the evidence for a bullish Dogecoin
A whale withdrew 10.366 million DOGE worth $2.25 million on 07 September from Binance. This wallet had been dormant for two years.
Such whale accumulation is a good sign for Dogecoin. Especially since sustained accumulation and demand could initiate a rally.
In a post on X, Trader Tardigrade observed that Dogecoin appeared to be breaking out of a triangle pattern on the 4-hour chart. While this is expected to have a strongly bullish follow-through after the consolidation of the past week, $0.224 would be a key short-term resistance.
If this level can be broken, the $0.24-level would be the next target this week.
Alphractal Founder Joao Wedson also noted that Dogecoin’s short-term holder supply has begun to increase, reflecting accumulation. Historically, a hike in STH supply levels have corresponded to strong bullish conditions for DOGE.
Therefore, long-term investors would want to stack more DOGE, even though volatility is present. This would mean that the memecoin will not trend higher in a straight line.
Source: DOGE/USDT on TradingView
Finally, the mouth of the Bollinger Bands on the 12-hour chart had been closing around the price candles over the past three days. However, they began to expand following DOGE’s swift move higher. Since setting a low of $0.212 on Saturday, 06 September, Dogecoin has rallied by 9.71% in 36 hours.
The OBV has been climbing higher over the past ten days to reflect buying pressure on the rise too. In fact, the OBV’s findings reinforced the rest of the evidence for a bullish DOGE in the short-term.
However, the memecoin has traded within a range (white) since March. The range high at $0.25 would be a significant obstacle to the bulls’ efforts.
