Dogecoin has been forming a triangle pattern since its 2021 all-time high of $0.73536, with analysts watching for a breakout above $0.49
The meme coin gained 4.1% in 24 hours and 5% over the past week, holding steady above $0.22 support
On-chain metrics show increased activity with new addresses up 102.40% and active addresses climbing 111.32% in seven days
Technical analysts identify a potential rally target of $3.08 if Dogecoin breaks above the triangle’s upper trendline
Key resistance levels remain at $0.25, $0.4, and $0.49, with support holding around $0.21-$0.22
Dogecoin has maintained its position above $0.22 since May 20, showing resilience after a brief dip earlier in the week. The meme coin peaked at $0.25 on May 23 before easing into the weekend.
In the last 24 hours, DOGE has gained 4.1%. Over the past week, the token is up 5% despite some midweek weakness.
TradingView analyst Akbar Karimzsfeh has identified a long-term triangle pattern that began forming after Dogecoin’s all-time high of $0.73536 on May 3, 2021. The pattern shows a tightening range as the coin has consolidated over nearly four years.
After reaching its peak in 2021, Dogecoin dropped to $0.048 on June 13, 2022. Since then, multiple attempts to break lower have failed. Key test dates include June 5, August 14, and October 9 of 2023.
The triangle’s lines are converging, which typically precedes a sharp price movement in either direction. The upper trendline of the triangle aligns with a large cup pattern around $0.4916.
Technical Resistance Levels
Dogecoin attempted a breakout in December 2024, nearly reaching the $0.4916 mark before being rejected. Following that rejection, DOGE fell to $0.13 before recovering to current levels.
The $0.4916 level remains a critical hurdle for bullish momentum. Traders are watching for a daily close above $0.50 as confirmation that the long consolidation phase is ending.
Another analyst, Trader Tardigrade, has outlined a formation suggesting DOGE could rally toward $0.4. The expert notes that Dogecoin is forming its second leg of consolidation below the $0.25 resistance level within a week.
The first consolidation leg occurred after DOGE failed to break above $0.25 resistance. Trader Tardigrade expects the coin to test this level multiple times before achieving a breakout.
A shakeout below $0.21 may occur to remove weak holders before any upward move begins. If successful, the resulting rally could target the $0.4 level last seen in late January.
On-Chain Activity Increases
Network activity data supports the bullish technical outlook. New addresses have jumped 102.40% over the past seven days. Active addresses climbed 111.32% during the same period.
Zero balance addresses increased by 155.45%, suggesting more users are testing the network or making small transactions. While this doesn’t guarantee long-term holding patterns, it indicates growing interest and activity.
The RSI indicator shows a hidden bullish divergence on the daily chart. This pattern suggests growing momentum for a potential bounce even as prices continue to fluctuate.
Dogecoin is forming a higher low while the RSI creates a lower low, which typically indicates underlying strength. Analyst Ali Martinez has highlighted $0.26 as a critical resistance level to watch.
Breaking above $0.26 could signal the start of a new bullish phase for the meme coin. The level has acted as a consistent barrier in recent trading sessions.
If Dogecoin successfully breaks above the triangle’s upper trendline and holds above $0.49, some analysts project a move toward $3.08. This target is calculated by adding the triangle’s height to the breakout point.
A failure to maintain current support could see DOGE test the lower trendline near $0.05. This level would represent a bearish scenario for the coin’s near-term outlook.
Dogecoin currently trades with a market capitalization of $33.5 billion, holding its position as one of the top cryptocurrencies by market value.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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