Date: Thu, June 05, 2025 | 06:10 AM GMT
The cryptocurrency market experienced a sharp pullback recently, dragging most major tokens into the red. Bitcoin (BTC) briefly dropped to around $104,000, while Ethereum (ETH) slipped to $2,600—both retracing from recent highs. This mini correction also impacted several memecoins—including Dogecoin (DOGE).
DOGE saw a weekly decline of over 15%, trimming its monthly gains to just 11%. But with the dip, a key structure forming on the lower timeframes is starting to show signs of strength — potentially hinting at a short-term bullish reversal.
Source: Coinmarketcap
Power of 3 in Play?
Zooming into the 4-hour chart, DOGE appears to be following a classic “Power of 3” setup — a price pattern that unfolds in three key phases: Accumulation, Manipulation, and Expansion.
Accumulation Phase
From around May 11 to May 31, DOGE traded sideways in a tight range between $0.25 and $0.21, forming the accumulation zone. This phase is marked by indecision, where buyers and sellers battle for control — and smart money quietly builds positions.
This entire range is highlighted by the shaded gray box in the chart. Repeated price rejections at both the top and bottom of the range reflect market compression, often the calm before a major move.
Dogecoin (DOGE) 4H Chart/Coinsprobe (Source: Tradingview)
Manipulation Phase
Since May 31, DOGE sharply broke down below the range, falling to as low as $0.1850. This move likely triggered stop-losses and panicked selling — textbook characteristics of the manipulation phase.
This dip may have been designed to shake out weak hands before a potential bullish reversal. If DOGE can hold the current support zone around $0.1850, it may mark the bottom of the manipulation phase and the beginning of a bullish reversal.
What’s Next for DOGE?
If DOGE manages to reclaim the $0.21 level, it could mark the transition into the expansion phase. A confirmed breakout above the upper range boundary at $0.25 would further strengthen the bullish case.
The projected upside target based on the pattern sits around $0.32, suggesting a potential rally of 71% from current levels. However, to keep this reversal setup alive, DOGE must hold the support of $0.1850. A sustained move below that level would invalidate the pattern and increase the risk of further downside.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
