🚀 Dogecoin Flashes Bullish Hammer Signal – Is a DOGE Rally Imminent?

Dogecoin just printed a textbook hammer candlestick on its daily chart—a classic reversal signal that’s got traders buzzing. Could this meme coin defy the skeptics (again) and stage a comeback?

The hammer’s hidden message

When DOGE’s price action forms a hammer—a long lower wick with a small real body—it screams one thing: sellers got rejected hard. The bulls stepped in, swallowed the dip, and closed near the highs. Now the question is whether they’ll follow through.

Meme magic or market mechanics?

Let’s be real—half of crypto trading is vibes, and DOGE runs on pure meme energy. But even cynical chartists can’t ignore this technical setup. Just don’t mention how the same pattern preceded last month’s 20% faceplant (oops).

Either way, grab your popcorn. When DOGE moves, it moves fast—usually while Wall Street ‘experts’ scramble to explain why dog money has more momentum than their precious ETFs.

Dogecoin Forms Hammer Pattern After Pullback

A daily hammer candlestick has appeared on Dogecoin’s chart, often seen as a sign of a shift in momentum. The pattern formed after a recent pullback, showing that sellers drove the price down, but buyers stepped in to push it back NEAR the day’s opening level.

Trader Tardigrade pointed out the formation on X, saying it may mark the end of the recent dip. A hammer pattern doesn’t confirm a MOVE by itself, but when it forms at support, it often draws attention from traders looking for a reversal.

#Dogecoin has formed a hammer candlestick pattern at the daily close

A hammer candlestick pattern is a bullish reversal indicator that typically appears at the bottom of a downtrend or the end of a consolidation phase. It is characterized by a small body at the upper end of… pic.twitter.com/8BhSysY6x6

— Trader Tardigrade (@TATrader_Alan) July 16, 2025

Dogecoin Still Trading in Broadening Wedge

Dogecoin has been moving inside a large ascending broadening wedge for over 600 days. The price bounced off the lower trendline again, which in the past has led to strong moves toward the upper band.

Notably, the next target in this setup sits around the $1 level. That line has acted as a magnet during past breakouts. However, traders still need to see price strength and volume support before assuming another run is underway.

Price Moves and Key Levels to Watch

DOGE was trading at $0.2 at press time, up 5% in the last 24 hours and more than 16% over the past week. Trading volume has climbed to $5.8 billion, showing renewed activity as the largest meme coin holds above the key $0.19 level.

CryptoPotato reported that if the price holds this range, it may push toward $0.25. If the move loses steam and Doge drops under $0.19, the pattern may weaken, and momentum could slow. Support remains near $0.19, with resistance around $0.25.

Open interest in DOGE futures has jumped, along with a rise in options activity. According to Coinglass, options volume ROSE by over 155%, while total open interest reached $2.85 million.

Meanwhile, the funding rate remains positive at +0.0151% as of July 16, showing long traders are paying to hold positions.