TLDR
- Dogecoin is approaching a key support trendline that has triggered previous rallies this month.
- The Relative Strength Index shows Dogecoin entering oversold territory which often signals a potential price rebound.
- A bullish engulfing candle is forming on the monthly chart which could confirm a major trend reversal if July closes strong.
- The Moving Average Convergence Divergence has flashed a bullish cross indicating a possible upcoming rally.
- Dogecoin whales have accumulated 310 million tokens during the recent dip which suggests strong buying interest.
Dogecoin (DOGE) price shows signs of a strong technical rebound as key indicators align for a potential upward breakout. The price action nears a crucial support level that has triggered past rallies, increasing confidence in a rebound. Alongside chart patterns, metrics like RSI and MACD offer further backing for possible gains in the short term.
Upward Trendline and RSI Show Strong Confluence
Dogecoin continues to respect an ascending trendline that began on July 10 and has supported prices through two major rallies. Each touch of this trendline has resulted in notable gains, reinforcing its role as a key support zone. The most recent price interaction with this trendline occurred at $0.2268, signaling another potential bounce.
The Relative Strength Index (RSI) aligns with the trendline support, indicating that Dogecoin is entering oversold territory. Past recoveries began when the RSI reached this level, prompting renewed buying activity. This confluence strengthens the probability of a short-term price reversal.
Previous rallies followed this pattern as seen on July 10 and July 19, with gains of 38.7% and 17.5%, respectively. These rebounds occurred after touching the trendline and followed through quickly, confirming bullish momentum. If current conditions hold, Dogecoin may experience another strong move upward.
Bullish Monthly Candle Pattern Adds Momentum
On a broader scale, Dogecoin is forming a bullish engulfing candle on the monthly chart, which is a strong technical signal. This pattern occurs when a green candle fully overtakes the previous red candle, signaling control by buyers. Similar patterns in 2021 and 2023 preceded rapid price increases.
If Dogecoin closes July above $0.28, the bullish engulfing setup will be confirmed on the monthly chart. Analysts believe this confirmation could push the Dogecoin price toward $0.30 or higher in the coming sessions. This candle formation has historically marked the beginning of major price rallies.
The monthly close is more significant as it aligns with other bullish indicators across shorter timeframes. A confirmed monthly engulfing pattern could encourage renewed interest from traders and institutional participants. As long as support holds, market momentum may build into August.
Dogecoin Price Supported by Whale Activity and MACD Signal
Whale accumulation further supports the bullish case, as large holders added 310 million DOGE worth $73 million during the recent dip. These purchases came from wallets holding between 100 million and 1 billion DOGE, reflecting confidence despite the price retracement. Accumulation typically signals expectations of a continued upward trend.
Additionally, the Moving Average Convergence Divergence (MACD) just flashed a bullish cross, suggesting the potential for a major rally. Historical MACD crosses in Dogecoin led to gains of 84%, 194%, and 446%, highlighting its reliability. The latest cross aligns with other bullish signals, reinforcing upside potential.
$Doge/M1#Dogecoin monthly candle will close in just 1 week.
This Bullish Engulfing Candle is likely to be established.
A big moment is coming. pic.twitter.com/UqssKC63Kq— Trader Tardigrade (@TATrader_Alan) July 24, 2025
The Dogecoin price still trades within a 146-day ascending channel, which analysts say has just been retested. This technical retest and continued buying interest point to strength rather than weakness in the current setup. With the current Dogecoin price at $0.2268, technical and volume signals indicate strong potential for upside movement.
