TL;DR

Dogecoin needs to reclaim $0.26 to confirm a double bottom and aim for a $0.46 breakout. Large holders added 310 million DOGE, signaling steady demand after a brief profit-taking dip. Trading activity slows, with volume down 32% as the market watches for the next breakout signal.

DOGE Nears Key Reversal Zone

Dogecoin (DOGE) was trading near $0.23 at press time after falling 1% in the last 24 hours. The weekly chart shows a 3.5% drop. The broader setup points to a possible double bottom forming between April and July, with both lows forming just under $0.20.

According to crypto analyst Ali Martinez, the key level for this pattern sits at $0.26. If DOGE climbs above and holds this price, the structure would confirm. Based on chart projection methods, a clean breakout could push the asset toward $0.46.

If Dogecoin $DOGE is truly forming a double bottom, this is the spot for a rebound. Reclaiming $0.26 as support could set the stage for a rally toward $0.46! pic.twitter.com/L9IgDef4Ia

If the OG meme coin clears $0.26, it may test resistance near $0.30 and then around $0.36. These levels match past turning points and may serve as areas where traders take profits or reevaluate.

Trader Tardigrade’s view supports this outlook. Their chart shows a similar pattern with a breakout area between $0.27 and $0.28. If the move comes with increased volume, the price could extend toward the $0.41 to $0.52 zone.

Large Holders Accumulate Over 300 Million DOGE

Large wallets added more than 310 million DOGE, according to Martinez. This follows a temporary sellout, an indication that big buyers are back in the market.

Although this action is not necessarily indicative of an uptrend, it is usually reflective of anticipation of a potential move upwards. These next few sessions will show whether this buying pressure persists or wanes.

Market Activity Cools Despite Setup

CoinGlass data shows Dogecoin’s daily volume dropped 32%, now at $11.83 billion. Open interest declined 4% to $3.94 billion. Options volume also decreased 23%, with open interest in options falling more than 50%.

Despite the bullish chart structure, the current dip in trading activity reflects a cautious stance. For now, the price occupies a tight range, with a break higher than $0.26 perhaps establishing the future price movement.