Dogecoin (DOGE): A Strategic Buy-Point After a Deep Correction

In the volatile world of cryptocurrency, few assets have captured the imagination of traders and investors like Dogecoin (DOGE). A meme coin born from a joke, DOGE has evolved into a symbol of community-driven innovation and speculative fervor. As of August 2025, the asset is poised at a critical juncture, where technical reversal signals, a multi-year bullish pattern, and transformative protocol upgrades converge to create a compelling case for a strategic entry point.

Technical Reversal Signals: TD Sequential and the Path to Recovery

The TD Sequential indicator, a powerful tool for identifying potential price reversals, has recently flashed a sell signal on the weekly chart of DOGE. This signal, triggered by a sequence of nine candles with consistent polarity, suggests a bearish exhaustion point. However, the same indicator has also generated a “9” count on the hourly timeframe—a bullish catalyst indicating that short-term selling pressure may have reached its peak.

Analysts like Ali Martinez have noted that DOGE is currently testing a critical support zone between $0.094 and $0.097, a level that has historically acted as a floor for the asset. If this zone holds, the TD Sequential “9” count could catalyze a relief rally, pushing the price toward $0.225 resistance. A successful breakout here would not only negate the bearish weekly signal but also align with the broader cup-and-handle pattern forming on the daily chart.

The Cup-and-Handle Pattern: A Multi-Year Catalyst

The cup-and-handle pattern, a classic bullish continuation formation, is now nearing completion for DOGE. The “cup” phase, characterized by a gradual consolidation into a U-shaped trough, began in late 2023 and saw the price dip to $0.165 before recovering to $0.25. The “handle,” a narrower consolidation phase, has seen DOGE trade between $0.19 and $0.22, with key resistance at $0.25 and $0.29.

A confirmed breakout above $0.29—validated by a close above this level—would trigger a multi-stage rally. Short-term targets include $0.38 (165% gain from current levels), while longer-term projections extend to $0.48 and even $0.80 by the end of 2025. This pattern's validity is further reinforced by the Money Flow Index (MFI) climbing to 89.12, signaling strong buying pressure, and the Supertrend and Awesome Oscillator (AO) indicators pointing to sustained bullish momentum.

Project Sakura: Reshaping DOGE's Fundamentals

While technical indicators paint a bullish picture, the long-term potential of DOGE is being redefined by the Dogecoin Foundation's Project Sakura. This ambitious protocol upgrade aims to transition the network from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism, known as “Proof of Doge” (PoD). The initiative, announced by Timothy Stebbing, Director of the Dogecoin Foundation, is a direct response to security vulnerabilities in PoW networks, such as the recent 51% attack on Monero.

Project Sakura's roadmap includes a tenfold increase in transaction throughput (from 30 to 30,000 TPS), deflationary token burns, and decentralized staking incentives. These changes are designed to position DOGE as a scalable, energy-efficient payment solution capable of competing with traditional systems like Visa and PayPal . The Dogebox testnet, a decentralized governance platform, is already facilitating community-led experimentation with protocol upgrades, ensuring alignment with Dogecoin's grassroots ethos.

The timing of Project Sakura's implementation—targeted for 2025—aligns with the current technical setup. A successful transition to PoD could attract institutional adoption, particularly as the U.S. GENIUS Act streamlines regulatory oversight for energy-efficient blockchains. This regulatory tailwind, combined with growing whale accumulation and a $500 million DOGE-denominated treasury, strengthens the case for a fundamental re-rating of the asset.

The Investment Case: Positioning at a Strategic Inflection Point

The convergence of technical and fundamental catalysts creates a rare opportunity for investors. DOGE's price is currently consolidating near $0.22 within a symmetrical triangle pattern, with open interest in derivatives reaching $1.7 billion and daily trading volume surging to 98 million. These metrics suggest heightened speculative activity, particularly as the market anticipates a potential breakout.

A key risk to consider is a breakdown below the $0.165 support level, which could trigger a retest of the $0.18–$0.16 zone. However, the TD Sequential “9” count on the hourly timeframe and the robustness of the cup-and-handle pattern suggest that the probability of a bullish resolution is higher. For investors with a medium-term horizon, entering a position at current levels—ideally with a stop-loss below $0.165—offers exposure to a potential 170% rally to $0.44.

Conclusion: A Bullish Convergence

Dogecoin stands at the intersection of technical momentum, pattern completion, and protocol innovation. The TD Sequential indicator's short-term bullish signal, the multi-year cup-and-handle pattern, and the transformative potential of Project Sakura collectively form a compelling case for a strategic buy-point. While risks remain—particularly around regulatory uncertainty and execution challenges in the PoD transition—the alignment of these factors positions DOGE as a high-conviction opportunity for those willing to navigate the volatility of the crypto market.

For investors, the message is clear: DOGE's next move could redefine its role in the global payments landscape. The time to act is now, before the market fully prices in the potential of this meme coin turned serious contender.