Dogecoin has seen more than 20% decline from its July high, but that might be about to end. A few strong technical signals are starting to appear on the charts, and analysts believe a reversal may be close.
Trader Tardigrade, known for his chart-based insights, pointed out something important on the 4-hour Dogecoin chart. According to him, DOGE is currently moving toward a confluence of trendlines, and support could be found right at that intersection. This is a key moment because when several trendlines meet, they often create a zone where the price bounces.
Looking at the chart he shared, DOGE appears to be squeezing into a wedge, where two sloping lines are coming closer together. One trendline is descending from previous highs, and another one is climbing slowly beneath the price. If the meme coin holds above this rising support, it may attract new buyers who are waiting for a bounce.
So far, the price has not broken below this area. That gives some traders a reason to be optimistic. DOGE has stayed within this tightening range, suggesting that a breakout could come soon. Whether it breaks upward or downward depends on how strong the support zone is.
Dogecoin Daily Chart Shows a Buy Signal
Another bullish signal came from well-followed analyst Ali. He shared that the TD Sequential, a momentum indicator used by traders to find trend reversals, has just flashed a buy signal on the daily chart of Dogecoin. This is significant because the TD Sequential does not trigger often. When it does, it can point to a shift in the price direction.
Dogecoin $DOGE is ready for another leg up as the TD Sequential presents a buy signal on the daily chart! pic.twitter.com/2vLffz2V7M
— Ali (@ali_charts) July 31, 2025
The chart Ali posted shows nine red candles followed by a green one. That is the classic pattern for a potential upside reversal under the TD system. If the signal plays out as expected, it could mean DOGE is ready for a new upward move.
This pattern has worked well for Dogecoin in the past, often marking the end of corrections and the beginning of new rallies. Given that the DOGE price has already dropped more than 20% from its July peak, some traders are watching closely to see if this marks the turning point.
DOGE Sentiment May Be Shifting
Together, the confluence of trendline support and the TD Sequential buy signal are starting to change the short-term outlook for the DOGE price. While Dogecoin has mostly trended lower through the second half of July, the meme coin now seems to be stabilizing.
Read Also: This Chart Reveals Key Condition for Next Worldcoin (WLD) Rally
Trader Tardigrade and Ali are both seeing signs of a possible rebound. Their signals do not guarantee a move, but they do give traders reasons to watch this area closely. If DOGE holds above its current support and breaks out of the wedge, the price could begin another leg up.
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