Dogecoin (DOGE) is showing early signs of a potential bullish reversal following a sharp correction from its recent high. A combination of technical indicators, bullish candlestick structure, and renewed accumulation by large holders suggests the meme coin could be approaching the end of its latest pullback. Dogecoin, launched in 2013 as a joke currency based on the Shiba Inu meme, has since grown into one of the most widely traded cryptocurrencies, and its price remains highly sensitive to shifts in retail sentiment and broader crypto market conditions.

DOGE reached approximately $0.1007 on August 22 before reversing lower. The subsequent decline pushed the cryptocurrency down more than 17%, bringing its price toward the $0.0828 area. While the retracement has weakened short-term momentum, it has also brought DOGE closer to a major historical demand zone where buyers may attempt to regain control.

TD Sequential Signals Possible Bottom

According to crypto analyst Ali Charts, the most powerful technical indication would be a new buy signal on Dogecoin's daily chart from the Tom DeMark (TD) Sequential indicator. The TD Sequential is designed to detect exhaustion in prevailing trends, meaning a buy signal after a long downtrend may indicate weakening selling pressure. The indicator, developed by Tom DeMark, is widely used across crypto and traditional markets, though like all technical tools it produces signals that do not always play out.

Source: Ali Charts' X Post

Although this signal would not necessarily produce an immediate bounce, its occurrence at this particular stage of DOGE's correction might mean the downtrend is coming to an end. Traders would look for further evidence of buying pressure to confirm the reversal.

The daily chart is also forming a morning doji star pattern, a reversal structure that typically emerges after a period of sustained selling. It reflects a shift from bearish sentiment toward market uncertainty and, ultimately, buyer domination.

Source: Ali Charts' X Post

Dogecoin Whales Accumulate 400 Million DOGE

The technical picture is being reinforced by on-chain movements. Large Dogecoin investors have reportedly accumulated up to 400 million DOGE over the last five days, indicating that major holders have been using the price decline to build positions. Because Dogecoin runs on its own proof-of-work blockchain with fully public transaction data, on-chain tracking tools can observe wallet-level accumulation in a way that is not possible on all crypto assets.

Source: Ali Charts' X Post

Such accumulation can become significant when it takes place near an established support level. Continued whale buying may ease sell-side pressure and provide additional liquidity if broader cryptocurrency market sentiment improves.

On-chain data also identifies $0.0813 as a key support zone for Dogecoin. A total of 35 billion DOGE was previously transacted in this area, forming a notable cluster of on-chain activity.

DOGE Eyes $0.1774 as Bulls Defend Support

Short-term prospects for the DOGE price depend largely on whether bulls can hold the $0.0813 support region. Staying above this zone would keep the reversal formation intact, while a breakdown would weaken the bullish pattern.

Source: Ali Charts' X Post

If stability holds and buyers return, the next upside targets for the cryptocurrency would be $0.1552 and $0.1774. Reaching those levels would require DOGE to reclaim intermediate resistance levels first. Market participants will also be watching broader crypto market conditions, such as Bitcoin's price direction and overall trading volume, which have historically influenced DOGE's own momentum.

For now, the combination of technical reversal indicators and whale accumulation strengthens the bullish case for DOGE, with the $0.0813 level taking on critical importance.

This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.