Dogecoin News Today: Dogecoin Surges 5% as Bullish Hammer Pattern Emerges

Dogecoin, a popular cryptocurrency, has recently formed a bullish hammer pattern on its daily chart, indicating a potential shift in momentum. This pattern emerged after a recent price pullback, suggesting that while sellers initially drove the price down, buyers quickly stepped in to push it back up to near the day’s opening level. This formation is often seen as a sign of a reversal, especially when it occurs at support levels, drawing the attention of traders looking for a potential uptrend.

Trader Tardigrade highlighted this formation on X, noting that it could mark the end of the recent dip. A hammer pattern is typically characterized by a small body at the upper end of the candlestick, with a long lower wick, signifying that the price was driven down but quickly recovered. This pattern is often seen as a bullish reversal indicator, especially when it appears at the bottom of a downtrend or the end of a consolidation phase.

Dogecoin has been trading within a large ascending broadening wedge for over 600 days. The price recently bounced off the lower trendline of this wedge, which has historically led to strong moves toward the upper band. The next target in this setup is around the $1 level, a line that has acted as a magnet during past breakouts. However, traders are cautious and are looking for price strength and volume support before assuming another run is underway.

At the time of reporting, Dogecoin was trading at $0.2, reflecting a 5% increase in the last 24 hours and a 16% rise over the past week. Trading volume has surged to $5.8 billion, indicating renewed activity as the largest meme coin holds above the key $0.19 level. If the price maintains this range, it could push toward $0.25. Conversely, if the move loses momentum and DOGE drops below $0.19, the pattern may weaken, and the uptrend could slow. Support remains near $0.19, with resistance around $0.25.

Open interest in Dogecoin futures has also spiked, accompanied by a rise in options activity. Options volume has increased by over 155%, with total open interest reaching $2.85 million. The funding rate remains positive at +0.0151%, indicating that long traders are paying to hold their positions, further signaling trader confidence in an upside move.