The price trend of Dogecoin (DOGE) is entering a phase that traders often pay close attention to, which is a period of price tightening that usually signals a decisive trend is about to come.
After several days of active trading, changes in ETF fund flows, and the rare convergence of technical indicators, the current market sentiment and structure of memecoins seem to be aligning.
Discussions surrounding Dogecoin are shifting from short-term speculation to whether the asset is preparing for a larger breakthrough by the end of the year.
In recent trading sessions, market activity has steadily increased, initially driven by an 8% rise in Dogecoin (DOGE) price to around $0.15. Meanwhile, trading volume surged by 242%, reflecting active participation from retail investors.
As the market structure tightens, the upward momentum of the Dogecoin ETF strengthens.
The primary catalyst for recent market fluctuations has been the launch of multiple exchange-traded products related to Dogecoin.
Grayscale's GDOG and Bitwise's BWOW have seen steady inflows since their launch, totaling nearly $2.9 million. Although the amount is still relatively small, analysts believe these products are an important step in bringing Dogecoin into mainstream financial products.
Meanwhile, the technical structure on the charts has narrowed into a symmetrical triangle, formed by continuously lowering highs and continuously raising lows. The current support level is in the $0.145 to $0.150 range, with the upper boundary close to $0.165. Once this support level is breached, prices could rise to between $0.18 and $0.20.
Indicators such as RSI, MACD, and TD Sequential tools show early signs of a momentum shift, but the signals remain unclear and need to be confirmed with larger trading volumes.
Analysts reassess the market, with retail traders leading the trend.
Despite the growing market optimism, institutional traders are adopting a more cautious stance. Both futures open interest and derivative trading volumes have declined, indicating that the market is waiting for a clearer direction.
Nevertheless, retail participation continues to rise, with analysts pointing out that as long as the price stays above $0.1470, Dogecoin's upward channel will remain intact.
From a higher time frame perspective, Dogecoin has also reclaimed a series of higher lows, further confirming that the meme token is trying to build a more sustainable bullish market structure.
Some analysts predict that if the current trend continues, prices could rise to $0.42 in the coming months; while more aggressive models suggest there is room for a retest of the psychological level around $1, although such targets remain highly speculative.
Traders are closely watching the $0.1470 and $0.1500 levels, as breaching these levels could lead to further price pullback towards $0.138. Currently, the market remains in a contraction phase, with both sides preparing for the next decisive breakthrough.
