Dogecoin price formed a double bottom pattern, pointing to an eventual rebound as whale accumulation continues.
Dogecoin (DOGE) was trading at $0.1700 on July 7, a few points above the year-to-date low of $0.1467. It has dropped by 35% from its highest point this May.
On-chain data shows that whales have continued adding to their positions in the past few months. Holders with between 1 million and 10 million tokens now hold over 10.5 billion, up from 10.32 billion in February.
Similarly, those with between 10 million and 100 million coins now hold over 24.8 billion, up from last year’s low of 18.2 billion. Increasing whale accumulation is a bullish sign because these investors are often more experienced than retail participants.
More data shows that Dogecoin’s funding rate has remained in the positive zone since July last year. A positive funding rate is a sign that investors anticipate the future price will be higher than it is today.
Dogecoin’s price has held steady after Elon Musk launched The American Party, which he hopes will become the third major political party in the U.S. He formed the party after falling out with Donald Trump, who signed a law that Musk believes will lead to more government spending. The so-called Big Beautiful Bill also ends a popular electric vehicle
Musk is often seen as the “Dogefather” for popularizing Dogecoin in 2019 and 2020, helping it become a multi-billion-dollar asset.
Dogecoin price technical analysis
The daily chart shows that DOGE price bottomed at $0.1467, a notable level that was the lowest point in March, April, and June this year. It has formed a double-bottom pattern whose neckline was at $0.2596, the highest point in May. A double bottom is one of the most popular bullish reversal patterns.
The Relative Strength Index has bounced back and is nearing the neutral point at 50. Similarly, the two lines of the MACD have made a bullish crossover and are pointing upward.
Therefore, the coin will likely maintain its bullish outlook as long as it remains above the double bottom at $0.1467. A rebound could see it rise and retest the resistance level at $0.2595. A drop below the support at $0.1467 would invalidate the bullish forecast.