Dogecoin Analyst Forecasts 850% Price Rally in September as Traders Deploy $42M Support at $0.21
Dogecoin price gained renewed momentum on Monday as trading volumes jumped 150%, following the meme coin’s 10% monthly gain in August that outpaced Bitcoin’s 6% decline. The weekend’s muted activity gave way to heightened market interest as DOGE closed August at $0.21.
Derivative data reinforces the recovery in traction as Coinglass reported that DOGE futures volumes jumped 119% to $5.36 billion, while open interest fell 4.7% to $3.24 billion.
The decline in open interest suggests strategic reshuffling, particularly from bullish traders who closed $7.61 million in long contracts, compared with just $2.41 million in shorts.
In the derivatives market, Coinglass data further confirms the resurgent Dogecoin market interest. As seen above, DOGE futures trading volumes rose 119% to $5.36 billion, though open interest dipped 4.7% to $3.24 billion.
This suggests aggressive position reshuffling rather than complete capitulation as liquidation heatmaps show that short-sellers remained dominant on Monday, with $262 million in leverage, overshadowing $172 million in long exposure.
However, a crucial detail stands out as the largest concentration of leverage is clustered at $0.21, where bull traders deployed $42 million in longs over the past week.
This level has emerged as a critical support zone for Dogecoin price action as Bitcoin led crypto market-wide corrections in the last week of August. If sustained, this base could provide the momentum for a decisive upward move heading into September.
Prominent market analyst DogeLord told his 12,500 followers on Sunday that a “propulsion candle” looks imminent, hinting that September could emerge as a major breakout month for Dogecoin price.
His long-term chart projection places Dogecoin on the cusp of a move that could propel prices back to all-time highs, signaling that sustained hold above $0.21 could fuel a rally to the $0.34 resistance zone, with further breakout towards the current global peaks near $0.75.
Beyond that, the chart projects a possible retest of prior all-time highs above $2, implying a rally of up to 850% from DOGE’s current price levels.
On the downside, failure to maintain the $0.21 support could expose DOGE to downside risk toward $0.17, with stronger support at $0.13. A break below those levels would likely delay any bullish momentum until another bull cycle kicks off.
With traders heavily clustered at $0.21, the coming weeks will test whether bulls can convert leveraged positioning into a September breakout, or if short sellers will press for further correction.
