Dogecoin Consolidates in Wyckoff Accumulation After 9.5% Weekly Drop
- Dogecoin shows a Wyckoff Accumulation on the 1-hour chart with a spring in Phase C.
- The token holds strong support at $0.2333 while resistance stands at $0.2425.
- Price has dropped 9.5% in seven days but now consolidates near $0.2415.
Dogecoin has entered a critical trading phase as it rebounds from a sharp weekly decline. The token, currently priced at $0.2415, has dropped 9.5% over the past seven days, reflecting broader volatility across the altcoin market. Despite this pullback, the one-hour chart now points to a potential Wyckoff Accumulation pattern, offering structure to recent movements. The setup indicates that Dogecoin may be forming stability around defined levels after a strong downswing. Importantly, the presence of a spring in Phase C underscores the possibility of price recovery in the short term.
Support and Resistance Levels Shape the Pattern
The chart outlines a notable support level at $0.2333, where price has previously responded with strong buying activity. Resistance is visible at $0.2425, which continues to act as a near-term ceiling. Between these boundaries, Dogecoin has displayed consolidation consistent with Wyckoff’s methodology.
In Phase A, preliminary support and selling climax events were observed before automatic rallies and secondary tests defined the structure. This early phase highlighted the first signs of absorption within the market.
Building from that point, Phase B showcased extended consolidation with several tests near support. Each retest helped define the range more clearly. Now, the recent spring formation in Phase C emphasizes a shakeout that triggered renewed buying pressure. The rebound from this point has created expectations for a Last Point of Support, which often precedes stronger movements in Wyckoff setups.
Dogecoin Advances Into Phase D as Accumulation Pattern Strengthens
Following the spring, Dogecoin has moved into Phase D, marked by the identification of a Last Point of Support (LPS). This stage often highlights growing demand, as price begins to approach resistance with greater consistency. The chart suggests a Sign of Strength (SOS) is possible if the asset maintains upward progress through the upper boundary.
Notably, this process remains confined to the lower timeframe, underscoring the importance of sustained volume confirmation before further advancement. The alignment of support, resistance, and Wyckoff’s sequence offers insight into immediate trading behavior. As long as the price maintains higher lows above support, accumulation theory suggests continued progression toward the resistance zone.
Path Toward Phase E and Market Implications
If price surpasses the resistance at $0.2425, Dogecoin could confirm the transition into Phase E of the Wyckoff pattern. This phase typically indicates a breakout and progression beyond consolidation. Importantly, Dogecoin’s 24-hour range highlights the narrowing gap between tested lows and resistance levels, reinforcing the structure’s relevance.
However, current momentum remains tightly linked to lower timeframe dynamics. The one-hour setup shows buyers defending the $0.2333 level while gradually pressing toward the ceiling. As a result, immediate developments around the spring and LPS areas will likely guide short-term market behavior.
