Dogecoin is showing signs of a potential recovery after a sharp correction from its August high. Analyst Ali Charts says DOGE may be preparing for another move higher after several technical and on-chain signals appeared at the same time. The setup comes as Dogecoin’s market price rebounds from the lower end of its recent trading range.
Dogecoin reached $0.1007 on August 22 before falling more than 17% to approximately $0.0828, according to Ali Charts. Historical market data confirms the sharp move, with DOGE closing around $0.0919 on August 22 before declining toward $0.082 during the following days.
The decline has now produced what Ali Charts describes as a buy signal from the Tom DeMark Sequential indicator on Dogecoin’s daily chart. Such signals are generally used by traders to identify areas where an extended move could be losing momentum. However, the indicator should be treated as a technical signal rather than confirmation that a sustained rally has begun.
Dogecoin also appears to have formed a morning doji star, another pattern traders often watch for potential reversals. The formation can indicate that sellers are losing control after a decline, particularly when it is followed by stronger buying activity. For DOGE, confirmation will depend on whether buyers can push the price beyond nearby resistance levels.
Technical Signals Point to a Potential DOGE Reversal
The combination of the DeMark signal and candlestick formation gives Dogecoin bulls a reason to watch the current range closely. Neither signal guarantees a breakout, but both suggest that the selling pressure behind the August decline may be weakening. The subsequent price action will be more important than the patterns themselves.
Market data shows DOGE moved sharply higher on September 3, closing near $0.0878 after trading as low as about $0.0817 during the session. The move represented a gain of more than 7% for the day and put the token back above the $0.085 area.
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That rebound is important because $0.08 has recently acted as an area where buyers have stepped in. A sustained hold above this region could give bulls a stronger foundation for another attempt at the $0.10 level. Conversely, a return below the recent lows would weaken the reversal argument.
Ali Charts also points to whale activity as another factor supporting the bullish case. According to the analyst, large holders accumulated more than 400 million DOGE over five days. Independent reporting also highlighted the same 400-million-DOGE accumulation figure, although whale activity alone does not establish whether the purchases will result in sustained price appreciation.
What Could Happen to Dogecoin Price Next?
If DOGE continues to attract buying interest, the first challenge is likely to be the resistance created by the recent recovery and the August high around $0.1007. A successful move through that level would represent a significant change from the current consolidation and could encourage traders to target higher levels.
The path will not necessarily be straightforward. Dogecoin remains highly sensitive to broader cryptocurrency market conditions, and a reversal in Bitcoin or other major digital assets could quickly undermine DOGE’s technical setup. Whale accumulation can also change direction, making on-chain data useful but imperfect as a standalone forecasting tool.
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For a bullish Dogecoin price prediction to strengthen, traders will want to see higher highs and higher lows develop on the daily chart. Increasing volume during advances would provide additional confirmation that the move is being supported by broader participation rather than a short-lived bounce.
The recent move already shows why the $0.08-$0.10 region deserves attention. DOGE spent several sessions near $0.08 before recovering, while the August 22 high created a clearly visible reference point for bulls. A breakout above that high would put the focus back on whether Dogecoin can establish a new trend rather than simply recover from its correction.
For now, Ali Charts’ thesis presents a possible reversal rather than a confirmed breakout. The technical indicators, whale accumulation and recent rebound provide several bullish signals, but DOGE still needs to prove that buyers can maintain control. If that happens, Dogecoin could make another attempt at $0.10 and potentially challenge higher levels; if support fails, the recent recovery could quickly lose momentum.
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