Dogecoin Forms Falling Wedge Near $0.0835
Dogecoin Forms Falling Wedge Near $0.0835
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Key Points
1
Dogecoin fell to approximately $0.068 last month, its weakest price level since 2023, before recovering toward the current range.
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Dogecoin’s circulating supply is about 155.9 billion tokens and expands by roughly 5 billion coins annually, adding to concerns about its long-term scarcity and value proposition.
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Analyst Trader Tardigrade sees a rounded-bottom and descending-trendline formation on Dogecoin’s monthly chart that resembles structures preceding two earlier rallies; he described a possible trendline break as a potential “cycle ignition” scenario.
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Dogecoin’s earlier consolidation near $0.070 during July and August coincided with tightening Bollinger Bands, followed by a mid-August breakout toward $0.10 before the rally stalled.
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The Bitwise-related sell-off was described as nearly 5%, while Dogecoin’s relative-strength index remained neutral as the token traded in a narrow range around $0.0838.
Dogecoin is trading near $0.0835 as a falling-wedge pattern forms on its one-hour chart, setting up a potential bullish reversal according to Pluang. The pattern is not yet confirmed, but traders are watching closely for a break above the $0.110–$0.120 resistance zone, which could signal a move toward $0.150. A drop below $0.080 would weaken the outlook and expose the token to further losses.
Technical signals remain mixed to bearish, with Dogecoin trading below its 20-day moving average and its MACD showing negative momentum according to CryptoNews. The broader crypto market has put pressure on DOGE, and according to reports, Bitwise's decision to liquidate its spot Dogecoin ETF has raised concerns about institutional demand for the token.
Falling Wedge Pattern Sets Up Reversal Possibility
The one-hour chart shows Dogecoin forming a falling wedge, a technical pattern that often precedes bullish reversals. According to Pluang, the pattern is taking shape near $0.0835 but has not yet confirmed a reversal. For the bullish case to take hold, DOGE needs to break and hold above $0.110–$0.120 resistance.
Open interest has risen to $1.26 billion according to CryptoTimes, suggesting traders are positioning for a move. However, the relative-strength index remains neutral, and Dogecoin's price remains trapped in a narrow range. A sustained break above resistance could target $0.150, while weakness below $0.080 would signal further downside risk.
Monthly Chart Hints at Potential Cycle Reversal
Analyst Trader Tardigrade has identified a rounded-bottom formation on Dogecoin's monthly chart with a descending trendline that resembles patterns preceding two earlier rallies. A break above this trendline could trigger what he calls a potential "cycle ignition" scenario. The formation suggests the token may be nearing a longer-term inflection point if resistance holds.
Earlier consolidation near $0.070 during July and August coincided with tightening Bollinger Bands, followed by a mid-August breakout toward $0.10. The rally stalled before reaching higher targets, leaving the monthly setup intact but unconfirmed. A decisive monthly close above the descending trendline would strengthen the bullish case.
Supply Growth and Institutional Headwinds Weigh on Outlook
Dogecoin's circulating supply stands at approximately 155.9 billion tokens and expands by roughly 5 billion coins annually according to CryptoNews. This ongoing inflation adds structural pressure to the token's long-term value proposition. Unlike Bitcoin, Dogecoin has no maximum supply cap, raising questions about future scarcity.
Recent weakness has also stemmed from Bitwise's decision to liquidate its spot Dogecoin ETF, a move that triggered a sell-off described as nearly 5% according to reports. The closure signals reduced institutional appetite for the token and underscores broader concerns about DOGE adoption. Longer-term prospects depend on greater real-world utility and reduced reliance on social sentiment.
SpaceX Launch and Risk Sentiment Shape Near-Term Direction
Dogecoin's price trajectory is also tied to broader crypto market sentiment and macro risk factors. Bitcoin briefly fell to $76,050 after the US inflation report but rebounded above $77,000 according to Pluang. The total crypto market capitalization stands at $2.646 trillion, with risk appetite still fragile. A sustained recovery in risk sentiment could lift DOGE higher.
SpaceX's scheduled DOGE 1 satellite launch on September 14 adds a potential catalyst for the token according to CoinGabbar. The first space mission funded entirely in crypto could reignite retail interest if it succeeds. However, technical weakness and institutional selling remain near-term headwinds that must be overcome first.
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