TL;DR

Dogecoin prints a bullish hammer as price rebounds from wedge support after 600 days of pattern formation. DOGE holds $0.19 level with volume surging, eyes $0.25 if current trend maintains strength. Futures open interest spikes to $2.85M, funding rate positive, signaling trader confidence in upside.

Dogecoin Forms Hammer Pattern After Pullback

A daily hammer candlestick has appeared on Dogecoin’s chart, often seen as a sign of a shift in momentum. The pattern formed after a recent pullback, showing that sellers drove the price down, but buyers stepped in to push it back near the day’s opening level.

Trader Tardigrade pointed out the formation on X, saying it may mark the end of the recent dip. A hammer pattern doesn’t confirm a move by itself, but when it forms at support, it often draws attention from traders looking for a reversal.

#Dogecoin has formed a hammer candlestick pattern at the daily close

A hammer candlestick pattern is a bullish reversal indicator that typically appears at the bottom of a downtrend or the end of a consolidation phase. It is characterized by a small body at the upper end of… pic.twitter.com/8BhSysY6x6

Dogecoin Still Trading in Broadening Wedge

Dogecoin has been moving inside a large ascending broadening wedge for over 600 days. The price bounced off the lower trendline again, which in the past has led to strong moves toward the upper band.

Notably, the next target in this setup sits around the $1 level. That line has acted as a magnet during past breakouts. However, traders still need to see price strength and volume support before assuming another run is underway.

Price Moves and Key Levels to Watch

DOGE was trading at $0.2 at press time, up 5% in the last 24 hours and more than 16% over the past week. Trading volume has climbed to $5.8 billion, showing renewed activity as the largest meme coin holds above the key $0.19 level.

CryptoPotato reported that if the price holds this range, it may push toward $0.25. If the move loses steam and DOGE drops under $0.19, the pattern may weaken, and momentum could slow. Support remains near $0.19, with resistance around $0.25.

Open interest in DOGE futures has jumped, along with a rise in options activity. According to Coinglass, options volume rose by over 155%, while total open interest reached $2.85 million.

Meanwhile, the funding rate remains positive at +0.0151% as of July 16, showing long traders are paying to hold positions.

Source: Coinglass