Date: Thu, June 05, 2025 | 06:10 AM GMT

The cryptocurrency market recently experienced a noticeable pullback, leading to declines across most major tokens. Bitcoin (BTC) briefly dipped to approximately $104,000, and Ethereum (ETH) retreated to $2,600, both adjusting from their recent peaks. This minor correction also affected several memecoins, including Dogecoin (DOGE).

DOGE saw a weekly decrease of over 15%, reducing its monthly gains to just 11%. However, with this dip, a significant structure forming on the lower timeframes is beginning to show signs of resilience, potentially indicating a short-term bullish reversal.

Source: Coinmarketcap

Power of 3 in Play?

Looking closely at the 4-hour chart, DOGE appears to be exhibiting a classic “Power of 3” pattern—a price formation that unfolds in three distinct stages: Accumulation, Manipulation, and Expansion.

Accumulation Phase

From approximately May 11 to May 31, DOGE traded within a narrow range between $0.25 and $0.21, establishing the accumulation zone. This phase is characterized by market indecision, where buyers and sellers compete for control, and informed investors discreetly build their positions.

This entire range is visually represented by the shaded gray area on the chart. Repeated price rejections at both the upper and lower boundaries of the range indicate market compression, often preceding a significant price movement.

Dogecoin (DOGE) 4H Chart/Coinsprobe (Source: Tradingview)

Manipulation Phase

Starting around May 31, DOGE experienced a sharp breakdown below the established range, falling to as low as $0.1850. This move likely triggered stop-loss orders and panic selling—hallmark characteristics of the manipulation phase.

This dip may have been strategically designed to shake out weaker investors before a potential bullish reversal. If DOGE can maintain support around the $0.1850 level, it could signify the end of the manipulation phase and the beginning of a bullish uptrend.

What’s Next for DOGE?

If DOGE successfully reclaims the $0.21 level, it could signal a transition into the expansion phase. A confirmed breakout above the upper range boundary at $0.25 would further solidify the bullish outlook.

The projected upside target based on this pattern is around $0.32, suggesting a potential rally of 71% from current levels. However, to maintain the validity of this reversal setup, DOGE must hold the $0.1850 support level. A sustained move below this level would invalidate the pattern and increase the risk of further downward movement.

Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. Always conduct thorough research before investing in cryptocurrencies.