Key Insights
- Dogecoin Price Prediction forms inverse head & shoulders; $0.17 support key for possible breakout toward $0.34 target.
- Whale wallets sold 60M DOGE in 48 hours, signaling caution amid high volume and market pressure.
- Open interest is down 15%, but options interest is up 100%, showing renewed bullish bets despite the recent drop.
Dogecoin has drawn attention with a potential breakout setup forming on its weekly chart. Despite recent selling pressure, analysts watch for a bullish reversal based on an inverse head and shoulders pattern.
Traders closely monitor the $0.17 support zone, as a bounce could lead to an upward move. If this pattern holds, DOGE may target a price of $0.34 soon.
Dogecoin Price Prediction Tests Key Support After Sharp Decline
At press time, the Dogecoin price was approximately $0.186 after a sharp drop of 11% on May 30. This decline followed increased long liquidations and heavy whale selling. Data from Coinglass showed $21 million in long positions were liquidated in 24 hours.
Technical analysts have identified a bullish inverse head and shoulders pattern despite the downturn. The left shoulder formed in mid-March, the head in mid-April, and the right shoulder in early May.
A neckline breakout occurred around $0.21, and the price is now testing the breakout zone between $0.17 and $0.18.
Traders often view this pattern as a trend reversal from bearish to bullish. If Dogecoin holds support and rebounds from this zone, the projected price target from the pattern is $0.34.
This target is calculated using the vertical distance between the head and neckline, which is added to the breakout point.
Whale Selling and Liquidations Trigger Downside Pressure
Whale wallets holding 100 million to 1 billion DOGE have cut their holdings. In the past two days, they shed 60 million tokens.
This move equals roughly $12 million worth of Dogecoin at the current price. Historical behavior shows these wallets sell ahead of declines and often accumulate during recovery.
At the same time, trading volume for Dogecoin has surged by 50%, indicating increased market activity. However, open interest in derivatives dropped by over 15%, pointing to possible profit-taking or market exit by some traders.
Volume increases with falling open interest suggest that recent trading was driven more by closing positions than new ones.
Derivatives Data Shows Bullish Sentiment Despite Recent Pullback
Market sentiment based on options data remains tilted toward the bullish side. Options open interest surged by over 100% recently, and options volume rose by over 13%. This rise often reflects speculation on upside movements or hedging against existing spot positions.
On Binance and OKX, long/short ratios from top traders also show a strong long bias. The Binance account ratio stood at 2.74 while OKX showed 3.36.
This suggests many traders are betting on price increases. However, long-dominant positioning raises the risk of short-term corrections or a long squeeze if prices fall further.
Despite recent pressure, Dogecoin is still inside a bullish technical structure. Market watchers are closely watching whether the price rebounds from the $0.17 zone.
A successful bounce and move above $0.23 may validate the inverse head and shoulders pattern and set Dogecoin toward $0.34.
Resistance and Breakout Levels That Could Lead DOGE to $0.34
Dogecoin is currently being supported by the important levels of $0.17 and $0.18. It lines up with both the retest of the technical neckline and the base of a weekly ascending wedge.
According to Trader Tardigrade, resistance areas are in the area of $0.22 to $0.23. This matches the spot where the neckline was broken.
Additional barriers to rise are located at $0.26 and $0.34. If the price keeps increasing and surpassing $0.26, traders may look to $0.34 as a significant further target. A move above $0.34 may allow XRP to increase to $0.38 or higher.
If the price drops below $0.17, the bullish pattern could fail. Should this happen, the price of Dogecoin might retest the support areas of $0.135 and $0.155. If confirmed, a weekly close below the lower trendline will make analysts watch lower price levels.
