DOGE Drops 11% Weekly, But Charts Hint a $1.80 Rally May Be Coming

Dogecoin (DOGE) is trading at $0.159 after falling more than 11% over the past seven days. Despite recent losses, traders are watching for signs of a possible short-term reversal.

Several technical indicators show that downside momentum may be weakening.

Bullish Divergence Forms on Daily Chart

A potential bullish divergence has formed on Dogecoin’s daily chart. The price has continued to make lower lows, while the Relative Strength Index (RSI) is showing higher lows. This setup, shared by Trader Tardigrade, often points to a shift in momentum before the price begins to recover.

Notably, the divergence zone is highlighted on the chart, showing the price falling while RSI trends upward. Traders are watching this pattern to see if DOGE can stabilize and build support for a move higher.

Meanwhile, DOGE is trading near the bottom of its Bollinger Band range on the weekly chart. The lower band sits at $0.151, just below the current price. This level has historically marked areas where selling pressure slows down.

Source: TradingView

The Stochastic RSI is also in oversold territory. The %K line is at 5.10 and the %D line is at 9.68, both below the 20 threshold. The lines are beginning to curve upward, which can suggest a potential bullish crossover if the move continues. This would be one of the first signs of a possible price recovery.

Fractal Pattern Points to $1.80 Target

A chart shared by Bitcoinsensus outlines a repeating structure in DOGE’s long-term trend. Previous rallies followed a similar setup — the price bouncing from a rising green trendline before large breakouts. The past moves returned 300% and 500%, and a third cycle appears to be forming now.

If the structure continues, DOGE could target around $1.80, based on the slope of previous rallies. The red trendline marking earlier peaks intersects near this area. The current pattern matches earlier phases in both timing and structure.

Whale Activity and Market Context

On-chain data shows that whale wallets accumulated 4.72 billion DOGE, worth about $770 million, over the last two weeks. This accumulation took place during the recent decline, suggesting that large holders are positioning despite broader market weakness.

At the same time, traders are watching for potential ETF-related news. There is speculation that firms such as Bitwise and Grayscale may soon file for spot DOGE ETFs. Meanwhile, the meme-coin sector remains under pressure, with the total crypto market cap slipping 2% in recent days.

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