Dogecoin Forms Bearish Pennant Amid DogeOS DeFi Plans
Developers propose DogeOS, a bridge to connect Dogecoin with Ethereum DeFi platforms. The aim is to enable DOGE lending, staking and cross-chain transactions. The move could transform Dogecoin into a functional asset beyond its meme origin.
Whales have increased Dogecoin accumulation in recent weeks. On-chain data shows major holders moving large DOGE volumes to long-term wallets. This trend signals confidence and may stabilise price ahead of new DeFi utilities.
Technically, DOGE/USDT on Coinbase has formed a bearish pennant on the four-hour chart. Following a sharp drop to $0.21, price consolidates between converging trendlines with shrinking volume. A breakdown below the lower support line could trigger a 51% drop to $0.14. The 50-period EMA at $0.224 and RSI near 35 suggest sellers remain in control. The Balance of Power readout also tilts negative.
Traders should watch for a decisive break below the pennant support. Confirmation may intensify selling pressure toward key support levels. Meanwhile, DogeOS progress underpins long-term utility prospects.
Bearish
The formation of a bearish pennant on the four-hour DOGE/USDT chart points to a high probability of further downside. Historical patterns show that pennant breakdowns often lead to continuation of the prior trend, in this case a sharp sell-off. The measured move projects a potential 51% decline toward $0.14 if the lower support is breached. Key indicators reinforce this bias: the 50-period EMA sits above the current price, the RSI is near oversold territory but not yet rebounding, and the Balance of Power slightly favours sellers. While long-term interest from whales and the DogeOS bridge proposal add fundamental upside potential, short-term technicals dominate trader sentiment. A confirmed break could trigger accelerated selling as momentum traders enter new short positions.