DOGE pattern hints liftoff, $0.21 could make or break it

Although things in the cryptocurrency market are looking a bit tedious, Dogecoin (DOGE) is showing signs of a bullish reversal on lower timeframes, as long as it manages to overcome a major resistance wall around $0.21.

Indeed, a 4-hour chart shows DOGE forming an inverse Head and Shoulders (iH&S) pattern, a classic setup that often precedes upward trend reversals, according to an analysis shared by popular crypto trading specialist Trader Tardigrade on October 21.

Furthermore, the chart highlights the right shoulder currently taking shape, with neckline resistance near $0.20 – $0.202, suggesting that a confirmed breakout could send Dogecoin toward the $0.215 – $0.22 region. As the analyst put it:

“Dogecoin is forming the right shoulder of an inverse Head and Shoulders pattern.”

On-chain data confirms heavy supply at $0.21

Supporting the technical outlook, fellow crypto analyst Ali Martinez shared a Glassnode cost basis heatmap revealing that approximately 10.5 billion DOGE were accumulated at around $0.21. This price range now represents a dense supply zone, meaning it may act as strong resistance when tested.

As it happens, this convergence of chart structure and on-chain data underscores a critical inflection point for Dogecoin. A clean breakout above the $0.21 threshold could trigger renewed momentum toward higher targets, while rejection at that level might extend the consolidation phase.

For the time being, Elon Musk’s favorite meme coin is trading at the price of $0.1936, suggesting a decline of 3.4% in the last 24 hours, dropping 3.34% across the previous seven days, and accumulating a dip of 27.16% on its monthly chart, per the latest data.

All things considered, momentum remains cautiously optimistic, with higher lows forming on shorter timeframes and traders eyeing $0.20 as the critical barrier. 

If buying pressure continues, alongside positive developments like the potential approval of a spot DOGE exchange-traded fund (ETF), and DOGE breaks through the neckline with volume, the pattern’s measured move could project price targets closer to $0.24 – $0.26 in the medium term.