Crypto Sat recently took to X to provide a technical analysis of Dogecoin, indicating that the cryptocurrency is demonstrating signs of accumulation following a significant correction. The analyst pointed out that the 2-hour chart is beginning to form a potential double bottom pattern. If this structure is validated, it could indicate a renewed upward movement for DOGE, attracting the attention of both short-term traders and long-term investors.
Currently, Dogecoin is exhibiting the traits of a double bottom formation, a well-known reversal pattern that may indicate a shift in market momentum, as noted by Crypto Sat. The initial bottom was established near the $0.170 level following a major price decline, where buyers initially entered to support the zone. Shortly thereafter, DOGE retraced for a second test of the same support area, creating a higher low structure that suggests diminishing bearish pressure and the onset of early accumulation.
One critical area to monitor is the neckline resistance, located between $0.198 and $0.200. Crypto Sat emphasizes that a breakout above this neckline would serve as a strong technical indicator of a change in market sentiment. Should bulls successfully push past this level, it could pave the way for a sustained upward rally, boosting traders' confidence in the reversal setup.
In his analysis, Crypto Sat has highlighted several key signals to observe as Dogecoin’s price action tightens. One early bullish indicator he mentions is the increasing volume observed on the second bottom, a subtle yet significant sign that buyers may be entering the market with greater conviction. Since volume often precedes price movements, this increase could signify the beginning of renewed upward momentum.
The critical resistance level to watch is around $0.200. A strong breakout above this zone could initiate a technical shift, potentially leading to a rally toward the $0.220 and $0.230 ranges. Such a movement would confirm the double bottom formation and likely attract additional bullish interest as market confidence builds.
However, if the price fails to breach the neckline, the support level around $0.165 will become the next key focus. A rebound from this zone would keep the pattern intact, but a decisive drop below it could invalidate the setup and imply further downside risk. Sharing his personal perspective, Crypto Sat believes that DOGE may be gearing up for a breakout but advises traders to exercise patience. He stresses, “Let the neckline decide the next big move,” highlighting the importance of waiting for confirmation before making aggressive trading decisions.
