Dogecoin News Today: Dogecoin Approaches Key Buy Zone as 27% Monthly Gain Sparks Bullish Optimism

Dogecoin is currently positioned near a historically significant price zone that has served as a catalyst for major bull runs in the past. Analyst Ali Martinez recently highlighted that the weekly price of DOGE has entered a critical area known as a “historically strong buy zone,” based on an ascending channel pattern observed over the past decade [3]. This technical pattern forms when a cryptocurrency’s price moves between two parallel trendlines, with the lower boundary acting as a support level. In prior cycles, Dogecoin has found support just below the lower edge of this channel, often signaling the start of a bullish phase [3].

At the time of writing, Dogecoin was trading around $0.21, having gained nearly 4% in the last 24 hours [3]. Over the past month, the coin has recorded a 27% increase, trading at $0.2202 on August 7, 2025 [2]. This upward momentum has led to speculation about an emerging altcoin bull run, with some analysts suggesting that a successful retest of the ascending channel’s lower boundary could trigger renewed buying interest [3].

The derivatives market has also shown heightened activity. Coinglass reported a 7.4% rise in open interest to $3.2 billion in a single day, along with a 1,485% surge in options volume and an 83% increase in options open interest [3]. These figures reflect growing speculative positioning and increased trader attention, suggesting that market sentiment is shifting in favor of DOGE.

On-chain data further supports the idea of potential upward movement. Large short liquidation clusters have formed around $0.2079, which could act as a price magnet, potentially pulling Dogecoin higher as traders face squeeze scenarios [3]. TheKingfisher noted that understanding these “zones of max pain” could help retail traders avoid getting caught in market traps during volatile phases.

In addition to the buy zone, Dogecoin has shown a recent 7% rally in a single day, pushing the DOGE/USD pair to $0.2143 [3]. This has brought the coin into focus for both accumulation and speculative positioning. However, while some analysts remain optimistic, others have urged caution. Trader Tardigrade warned that Dogecoin must close daily candles above $0.19 to avoid forming a bearish head-and-shoulders pattern, which could lead to a downward correction [3].

Martinez also pointed to similar patterns in other memecoins, such as Pudgy Penguins (PENGU), which recently broke out of a descending channel. This breakout has led the analyst to predict a price target of $0.041 for the token [3].

Broader technical analysis suggests that Dogecoin is consolidating after the highs of the 2021 bull run. A descending triangle pattern has formed on the chart, and a successful breakout could signal the start of another significant upward move. Martinez noted that Doge has already bounced off an important ascending trendline that has historically supported major bull runs [7].

As the market watches for signs of a breakout, the interplay of technical patterns, on-chain activity, and trader sentiment will be key. While bullish indicators are building, analysts caution that key levels such as $0.19 remain critical barriers to further upward movement [3].

Source:

[1] title: Dogecoin Is Right Where Past Bull Runs Have Taken Off (url: https://www.mitrade.com/insights/news/live-news/article-3-1023470-20250808)

[2] title: Dogecoin Isn't Done Yet – Grok's Surprising Price ... (url: https://www.mitrade.com/au/insights/news/live-news/article-3-1023478-20250808)

[3] title: Dogecoin Surges 7% In A Day: Trader Warns Don't Get ... (url: https://www.benzinga.com/crypto/cryptocurrency/25/08/46965841/dogecoin-surges-7-in-a-day-trader-warns-dont-get-caught-in-the-trap-0-2079-could-act-as-price-magnet)

[6] title: Dogecoin Price Crash Could End Soon With A Roadmap ... (url: https://www.tradingview.com/news/newsbtc:43bade097094b:0-dogecoin-price-crash-could-end-soon-with-a-roadmap-for-5)

[7] title: Dogecoin Price Targets $0.69 as Bullish Patterns Form (url: https://www.coingabbar.com/en/price-prediction/dogecoin-price-targets-069-as-bullish-patterns-form?srsltid=AfmBOoqljGSGP1RYFtGIdxlcIt9qmbDyYfZiNAABSFd7irPnmRuaTy54)