- Dogecoin price faces a risk of a $0.189 breakdown amid the formation of a head and shoulders reversal pattern.
- A 43% decline in DOGE future open interest indicates reduced speculative activity, which can lead to lower volatility
- The formation of a rising channel pattern drives a slow yet steady recovery in DOGE’s mid-term trend.
- The on-chain data highlights a significant 1 billion DOGE accumulation from crypto whales today, bolstering the potential price rebound.
DOGE, the largest meme cryptocurrency by market cap, is up 2.98% during Wednesday’s U.S. market hours, reaching a current trading value of $0.2. This bullish uptick aligns with broader market momentum as the majority of major digital coins attempt to bottom their ongoing correction. However, the Dogecoin price gains additional momentum amid the increasing accumulation from crypto whales.
However, the derivative market supports bearish pattern formation in a shorter time frame, signalling the risk of a prolonged correction before the memecoin gains stable support.
Crypto Whales Accumulate 1 Billion DOGE Amid Price Pullback
From the fourth week of July, the crypto market takes a bearish pullback in an attempt to recuperate its bearish momentum. However, the meme coin market takes a significant hit from this correction due to its inherent volatility.
Thus, the Dogecoin price is down from $0.288 to a current trading value of $0.205—a 36% decrease in the last three months. Following the price downtrend, the DOGE futures open interest has plunged from $5.35 billion to $3.01 billion, registering a 43% loss.
DOGE/USDT – 4hour Chart
According to Coingecko data, DOGE’s market cap currently stands at $30.87 billion, while the 24-hour trading value wavers at $1.27 billion.
This decline indicates that the derivative traders are closing their active positions in the futures market to secure themselves from current market volatility. As the derivative traders unwind their position, it signals a lack of confidence in short-term price stability, potentially leading to weak market momentum.
DOGE Futures Open Interest | Coinglass
Additionally, the DOGE OI-weighted funding rate has now plunged to 0.0049%, signaling that bullish sentiment is waning. Thus, fewer traders are willing to pay to stay long, indicating fading confidence in a rally.
DOGE Futures Open Interest | Coinglass
The four-hour chart analysis on Dogecoin price shows the recent reversal is likely developing a well-known reversal pattern called an inverted head-and-shoulders. The chart setup is characterized by three peaks, i.e., a middle one that extends higher and showcases a sharp reversal due to intense supply pressure, flanked by two shorter swings on either side.
If the pattern holds, the coin could plunge over 8% to challenge the neckline resistance at $0.189. A potential breakdown below this floor would accelerate the selling pressure for another 18% drop to retest a long-coming support trendline at $0.161.
On the contrary, if the coin price breaks above $0.21, the buyers would strengthen their grip over this asset and invalidate the bearish thesis.
Also Read: Ethereum Price Eyes $4,000 as Institutions Drive Recovery Momentum
Dogecoin Price to Hold Channel Pattern Amid Whale Buying
Since April 2025, the Dogecoin price has witnessed a slight upward incline amid the formation of a rising channel pattern. The altcoin bounced thrice from the pattern’s upper boundary and twice from the lower one, validating the pattern’s ability to influence price direction.
Dogecoin’s past performance within the pattern shows two instances of bullish reversals from the lower trendline, which doubled the coin value in over a month.
Thus, the trendline acts as a high-accumulation zone for buyers to regain their momentum for a bullish rebound.
The flat trajectory of the 100- and 200-day exponential moving averages indicates a lack of strong conviction from buyers or sellers to influence the price direction.
DOGE/USDT – 1d Chart
Despite the mounting bearish momentum, the high-net-worth investors show a renewed interest in this dog-themed memecoin. According to a recent tweet, market analyst Ali Martinez highlighted that crypto whales have bought over 1 billion Dogecoin in the last 24 hours.
Historically, an accumulation trend from this investor’s class has often coincided with a major market bottom or renewed market recovery.
Whale Activtiy | Santiment
Alternatively, a breakdown below the channel support would accelerate the bear’s momentum and drive a prolonged downtrend.
Also Read: Ethena Price Eyes $1 Rally as Whales Accumulate Over 1B ENA