Dogecoin Targets $0.177 as Analyst Flags Major Technical Setup Resembling 145% August 2022 Rally

Technical Setup Mirrors Historic Rally Catalyst

Dogecoin, which has maintained its position as the largest dog-themed cryptocurrency by market capitalization, could be setting the stage for a significant upward move, according to recent technical analysis from crypto analyst Ali. The assessment comes as multiple technical indicators align in a pattern that previously preceded a substantial rally, while large market participants actively accumulate holdings and position for potential gains.

The current technical configuration on Dogecoin’s monthly chart bears striking similarities to the setup observed in August 2022, when the asset embarked on a remarkably strong 145% monthly rally. During that earlier period, the coin formed an inverted hammer pattern—a technical structure suggesting potential reversal—alongside a Tom DeMark Sequential buy signal, followed by the emergence of a doji candle formation.

Today, Dogecoin is displaying an identical sequence: an inverted hammer has formed on current charts, the Tom DeMark Sequential—a well-established technical indicator recognized for identifying potential trend reversals—has flashed a buy signal on the monthly timeframe, and a doji candle is presently developing. If historical price action repeats according to this pattern, Ali suggests the next monthly candle could trigger a pronounced movement in value.

Resistance Levels and Upside Targets

Two key price levels emerge as critical to watch for Dogecoin’s trajectory in the period ahead. The primary resistance sits at $0.0813, where historical data shows that approximately 30 billion DOGE tokens changed hands in previous transactions. Notably, Dogecoin encountered sharp selling pressure at this exact level on June 23, establishing it as a significant hurdle to overcome.

If Dogecoin successfully breaks through and sustains a close above this $0.0813 threshold, converting it from resistance to a support level, Ali indicates that the next target would be the $0.177 level, which represents the next major resistance point. Since late June 25, Dogecoin has traded predominantly sideways, oscillating between $0.068 and $0.08 in a range-bound pattern. At the time of analysis, the token was trading at $0.069, though a death cross has appeared on its hourly chart, suggesting near-term caution for short-term traders.

Whale Accumulation Signals Conviction

Market activity from large holders adds credibility to the bullish technical setup. Over the preceding week, these major participants had acquired more than 430 million DOGE tokens, demonstrating what analysts interpret as conviction in the potential for upside movement. This whale positioning coincides with a technical framework that historically has preceded significant rallies.

For the broader cryptocurrency market and retail participants tracking altcoin movements, Dogecoin’s technical alignment represents another important test of whether established chart patterns continue to hold predictive power. Sustained DOGE momentum could lift sentiment across the altcoin complex and broader crypto markets as risk appetite strengthens.

Source: U.Today. Not financial advice.