Dogecoin forms an accumulation base as historical chart patterns align, and an analyst suggests it’s time for bulls to rule.
Dogecoin has recently shown signs of recovery after a brief decline. Between June 20 and June 23, the asset dropped steadily, reaching just above $0.145. However, the price rebounded sharply, forming a V-shaped recovery pattern. By June 26, Dogecoin had stabilized in the $0.162 to $0.167 range.
While the asset now trades sideways, TradingView analyst Setupsfx points to a critical development phase based on Wyckoff theory, suggesting that a bullish shift may be forming.
Wyckoff Pattern and Accumulation Signs Emerge
According to the chart shared by Setupsfx, Dogecoin appears to be in an accumulation phase. The chart also highlights multiple Change of Character (CHoCH) patterns, typically indicating early buying interest. In addition, marked Fair Value Gaps (FVG) and Imbalances (IMB) suggest potential target areas if upward momentum increases.
Notably, historical data from 2024 also reflects similar behavior. A descending trendline formed after Dogecoin surged to $0.2286 in late March 2024. The trendline rejected upward movement several times, including on July 22 at $0.141 and July 29 at $0.135. A breakout in late 2024, following a visible accumulation, sent prices as high as $0.48 by December 2.
Following that high, a new falling trendline emerged. The price touched $0.435 on Jan. 13, 2025, before declining to $0.128 by April 7, 2025. After rebounding again, Dogecoin faced another rejection near $0.254 on May 19, 2025. The asset has since entered a new accumulation zone, indicating a possible attempt at another breakout.
Upside Potential Cited by TradingView Analyst
Setupsfx has emphasized that Dogecoin is now trading at a key buying level. However, the analyst noted the need for confirmation before any trading decision. The current phase may take some time to mature, as it is currently in a state of accumulation. According to the analysis, price movement into a distribution phase would offer stronger directional signals.
Based on the chart setup, Setupsfx projects that a successful swing trade from the current price of $0.1653 could yield gains up to 214.6%. If that occurs, Dogecoin could reach a potential target near $0.52, a new yearly peak. However, risk parameters remain necessary, given the structure has not yet fully confirmed a bullish breakout.
Key Metrics Indicate Network Growth
On-chain data from IntoTheBlock confirms the thesis of ongoing accumulation. Over a 7-day period, new addresses rose by 102.40%, while active addresses increased by 111.32%.
Zero balance addresses—often indicating prior holders returning—grew by 155.45%. These metrics suggest rising interest and user participation, both critical elements for sustaining accumulation phases in crypto markets.
Higher-Low Structure Signals Possible Continuation
Meanwhile, an additional analysis came from Twitter users WIZZ and Chris also pointed to looming bullishness. Chris, in a June 24 tweet, mentioned Dogecoin’s bounce from a multi-year support trendline on the weekly chart. He noted the move maintained the coin’s higher-low structure, established after October 2023. This structure previously triggered a shift into an ascending channel.
Chris indicated that, if the structure holds, Dogecoin may continue toward the top of the wedge. His chart projected a potential move to $1, or even as high as $1.40.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
