Dogecoin’s Technical Reversal Signal and Strategic Entry Points: A Short-to-Medium-Term Bullish Setup
- Dogecoin (DOGE) shows bullish reversal signals in August 2025 via TD Sequential "9" counts and a completed cup-and-handle pattern targeting $0.225–$0.80. - Institutional whales accumulate 680M DOGE while retail traders sell 1.5B tokens, indicating shifting market control to long-term holders. - Protocol upgrade Project Sakura (proof-of-stake transition) and r/dogecoin's 74 Fear & Greed Index highlight fundamental and psychological catalysts. - Strategic entry near $0.21–$0.22 with $0.165 stop-loss balanc
Dogecoin (DOGE) has entered a pivotal phase in August 2025, where technical indicators, on-chain dynamics, and market sentiment align to suggest a high-probability bullish reversal. The TD Sequential indicator, a tool designed to identify exhaustion points in trends, has triggered a "9" count on multiple timeframes—including the 4-hour, 3-day, and hourly charts—signaling potential bearish exhaustion and a short-term reversal if the price holds above $0.094–$0.097 [1]. This signal coincides with a nearly completed cup-and-handle pattern, a classic technical formation that projects a rally to $0.225 and potentially $0.38 or $0.80 by year-end if key resistance levels hold [1][2].
Convergence of Technical and On-Chain Catalysts
The TD Sequential "9" buy signal is not an isolated event. It aligns with a maturing cup-and-handle pattern, where DOGE has tested critical support levels at $0.21–$0.22 multiple times [2]. A confirmed breakout above $0.29 would validate the pattern and align with strong buying pressure indicated by the Money Flow Index (MFI) of 89.12 [1]. Additionally, on-chain data reveals a divergence between retail and institutional behavior: while retail traders have sold 1.5 billion DOGE tokens, institutional whales have accumulated 680 million DOGE in August 2025 [2]. This contrast suggests a potential shift in market control from speculative retail traders to long-term institutional holders, a dynamic often preceding sustained rallies.
Strategic Entry Points and Risk Management
For traders seeking aggressive positioning, the $0.21–$0.22 range represents a critical entry zone. A stop-loss below $0.165 is recommended to mitigate the risk of a breakdown [2]. If DOGE breaks above $0.25, the target could extend to $0.30, with a 165%–170% rally to $0.44 or higher possible if the price surpasses $0.29 [1]. However, overbought conditions—reflected in the Fear & Greed Index at 74—highlight the risk of a sharp correction if institutional adoption or ETF approval fails to materialize [2].
Fundamental Catalysts and Market Psychology
Beyond technicals, Dogecoin’s protocol upgrade, Project Sakura, adds a fundamental catalyst. Transitioning from proof-of-work to proof-of-stake, this upgrade aims to enhance scalability and attract institutional adoption [1]. Meanwhile, the r/dogecoin subreddit has seen a surge in activity, with traders forecasting bullish price targets and renewed interest in DOGE’s utility [2]. Analysts like Trader Tardigrade have even projected long-term moves to $0.82 and $2.18, underscoring the asset’s speculative appeal [3].
Conclusion: Balancing Opportunity and Caution
While the technical and on-chain signals present a compelling case for a short-to-medium-term bullish setup, traders must remain vigilant. Heavy liquidation clusters near $0.215 and $0.225 could trigger volatility, and crowded long positions increase the risk of a sharp correction [1]. However, the convergence of TD Sequential signals, pattern completion, and institutional accumulation creates a favorable risk-reward profile for those willing to enter near $0.21–$0.22 with disciplined risk management.
Source:
[1] Dogecoin eyes breakout - THIS will decide DOGE's next big move
[2] Is Dogecoin's TD Sequential '9' Buy Signal and Whale Activity a Valid Entry Point for Aggressive Positioning?
[3] Dogecoin (DOGE) Ready to Bounce After Sharp Dip
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Whale Deposit Triggers GIGGLE Token Price Surge
Pi Network Achieves Milestone in KYC Verification
Solana Poised for Institutional Crypto Revolution in 2025
JustLend DAO Completes First JST Buyback and Burn