Dogecoin Faces Pullback but Holds Strong Above Key Support

Dogecoin (DOGE) has been trading within a rising wedge pattern since April, showing steady growth despite facing phases of consolidation. The memecoin recently endured a sharp pullback, but analysts say its support levels remain intact, keeping the possibility of a rebound on the table.

DOGE Slips 20% But Support Holds Firm

On September 23, DOGE fell nearly 20% to touch $0.24 after weeks of sideways pressure. Even so, the token managed to hold above the crucial $0.22 support zone. Market watchers view this level as a line in the sand for preventing further downside momentum, and so far, the support appears to be holding.

Analyst Sees Potential Rally Ahead

Crypto market analyst Ali Martinez believes the recent drop may have set DOGE up for a short-term bounce. He noted that the memecoin is testing wedge support while also flashing a TD Sequential buy signal on the 4-hour chart. Martinez further highlighted the presence of an ascending triangle pattern, suggesting that DOGE could target the $0.30 range if the support floor continues to hold.

Technical Signals Point to Consolidation

Despite the short-term bullish setup, DOGE’s broader technical outlook appears mixed. On the daily chart, the MACD has turned bearish, showing signs of growing weakness as its negative histogram expands. At the same time, the Relative Strength Index (RSI) is hovering near overbought levels, reinforcing the possibility of consolidation.

Traders say this setup could lead to sideways price movement in the weeks ahead, giving DOGE time to absorb selling pressure before making its next decisive move.

Whale Activity Raises Market Concerns

Adding to the uncertainty is the activity of large DOGE holders. Recent on-chain data revealed that a whale transferred 800 million DOGE (worth nearly $190 million) to Binance, while wallets holding between 100 million and 1 billion DOGE sold another 680 million coins.

Such large-scale movements often weigh on sentiment, as traders interpret them as signals of potential selling pressure. Analysts caution that if whale selling accelerates, DOGE’s support could be tested again.

ETF Momentum Could Bolster Long-Term Outlook

While short-term uncertainty clouds the picture, Dogecoin continues to benefit from positive structural developments in the broader market. Interest in crypto-linked exchange-traded funds (ETFs) is growing, with Grayscale’s filing for a Dogecoin Trust (GDOG) and the recent appearance of the 21Shares DOGE ETF on DTCC’s listing platform.

If approved, these products could provide institutional investors with easier access to DOGE, potentially fueling stronger demand and improving long-term price stability. For now, traders are keeping a close watch on ETF developments as a possible catalyst for Dogecoin’s next big move.