Dogecoin Signals Potential Rally as Support Holds and ETFs See Inflow Revival

Dogecoin is hovering near the $0.056 support level, triggering an unexpected monthly buy signal from the TD Sequential indicator. This could mark the start of a notable reversal for the meme coin, which has struggled to maintain momentum in recent months. The renewed inflows into spot Dogecoin ETFs, the first since mid-June, add fresh fuel to the market's optimism.

Technical Indicators Point to Possible Upside

The TD Sequential indicator lit up on Dogecoin’s monthly chart as the token approached a critical support zone near $0.056. Chart analyst Ali Charts highlighted this setup on Twitter, emphasizing that holding above this threshold could unlock a rebound toward $0.16. This level corresponds with previous resistance, suggesting the path upward is plausible if the support acts as a solid floor.

Beyond $0.16, the broader channel resistance near $0.45 becomes the next target, should buying pressure intensify. Traders are closely watching how DOGE behaves around this support area, as a failure to hold could derail the bullish setup.

Triangle Formation Could Signal a Larger Move

Meanwhile, a trader known as XForceGlobal identified a potential triangle pattern forming on Dogecoin’s price chart. This pattern, contingent on maintaining a certain invalidation level, points to a conservative upside potential ranging from 10 to 20 times current levels, driven by accumulation trends and cycle rotations in the market.

Describing the scenario as a "last stand" for bulls, the analyst warned that if the price breaks below the critical invalidation level, the optimistic triangle thesis would collapse, turning the outlook bearish. Market watchers are tracking this boundary closely, as it could dictate the next major directional move for Dogecoin.

Adding to Dogecoin’s recent momentum are the inflows recorded in spot Dogecoin ETFs, breaking a nearly month-long dry spell since June 17. This renewed interest from institutional-style investors may boost confidence among retail traders.

This material is informational and does not constitute financial advice.