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Dogecoin’s Technical Reversal Signal and Strategic Entry Points: A Short-to-Medium-Term Bullish Setup

Dogecoin’s Technical Reversal Signal and Strategic Entry Points: A Short-to-Medium-Term Bullish Setup

ainvest2025/08/28 15:39
By:BlockByte

- 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

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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.

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