Cryptocurrency

Dogecoin Rebounds as Cup-and-Handle Pattern Forms

Trix Raven

September 1, 2025
12:00 PM

Dogecoin’s Recent Price Volatility and Whale Activity

Dogecoin’s price dropped a lot recently, going down 5% in a short amount of time. A lot of the time, this drop was caused by a general weakness in risk assets across the market. A big whale moving a lot of Dogecoin to an exchange wallet was a big reason for this volatility, which worried people.

This big transfer of money made people think about a possible sell-off and a general market distribution. The move also caused a big drop in open interest for Dogecoin futures, which shows that traders were less willing to take risks. This whale activity shows how easily the token can be affected by big players moving a lot of money.

Whale Accumulation Shows Interest from Institutions

Even though prices have been going up and down a lot lately and many people are selling, on-chain data shows that whales are still buying Dogecoin tokens. These big players bought a lot of Dogecoin in August, which shows that there is strong and ongoing demand from institutions. This accumulation is happening even though a lot of smaller investors are selling their stocks.

This trend is a strong sign that serious, long-term investors are not giving up on the token. Their buying activity is a very important level of support for the price. The fact that institutions are still involved in the market shows that people have a lot of faith in the token’s future growth.

The Charts Show a Bullish Cup-and-Handle Pattern

Several new technical indicators are now pointing to a possible bullish reversal for the Dogecoin token. The price movement is starting to look like a classic cup-and-handle pattern, which is a sign that the market is likely to keep going up. This pattern makes it look like a big move up could be coming.

Many traders and analysts are now becoming more hopeful because of this new technical formation. The pattern shows a time of consolidation that is now making a strong base for the next rally. If this pattern breaks out for sure, it could start a new wave of buying in the market.

A New Rally Toward a Higher Price

A few important support and resistance levels that all traders are keeping an eye on are now setting the price of the token. The $0.21 level is still the main floor, and if it breaks, the current price drop could last longer. The bulls need to protect this level at all costs.

On the other hand, the $0.23 price level is still a short-term ceiling because attempts to break through it have failed. A strong and long-lasting breakout above this important resistance level would be the first big sign that a new rally is coming. How these levels are resolved will determine which way the token’s price will go.

What Global Traders Are Looking for in a Rally

Before making their next moves, traders all over the world are keeping an eye on a few important events. They want to know if the $0.21 support level can stay strong even though whales are still selling. This would be a very important sign that the token is strong in the market.

If the price breaks out above the $0.23 resistance level, it would be a big sign that a new rally toward a much higher price is on the way. They are also keeping an eye out for signs of institutional accumulation starting up again as whales move supply to the exchanges. A lot of people will find these key signs very helpful.

How On-Chain Flows Affect Market Direction

The token’s on-chain flows are very important for figuring out where the market is going and how people feel about it. A huge transfer of money to an exchange can make a lot of retail investors very scared. A lot of people may panic and sell, which could cause prices to drop in the short term.

But if whales keep buying during a price drop, it could mean that there is a new and very strong demand for buying. This is a much healthier way of doing things that can bring a lot of stability over time. These signals on the blockchain are very important for figuring out what the biggest players in the market really want.

Dogecoin at a Very Important Turning Point

A lot of important things will affect Dogecoin’s price in the future, and this is a very important turning point for the coin. The technical formation of a cup-and-handle pattern is a very good sign, but it needs to be confirmed by a strong breakout. The fact that whales are still buying up more and more is another strong sign that institutions are interested.

The price will now depend on whether the key support level can hold up under selling pressure and whether buyers can push the price above its resistance. The future looks good, but the token needs to keep getting new money in order to keep going. For everyone involved, the next few weeks will be very important.

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