Despite some midweek dips, DOGE has managed to rebound and even reached a high of $0.25 on May 23rd. The token is up 4.1% in the last 24 hours and 5% over the past seven days.
Dogecoin’s chart tells a story of sharp rises and significant corrections. After hitting an all-time high of $0.73536 on May 3rd, 2021, the meme coin plummeted to $0.048 by June 13th, 2022.
DOGE’s Market Capitalization
Source: TradingView
According to TradingView, DOGE has since been coiling within a tightening symmetrical triangle pattern.
DOGE has attempted several breakdowns over the past two years, notably on June 5th, August 14th, and October 9th of 2023, but each attempt was met with strong buying pressure, preventing a deeper slide.
The triangle pattern continues to narrow, suggesting that a significant breakout or breakdown could be imminent.
One of the most important levels on Dogecoin’s chart is around $0.4916, which coincides with both the upper boundary of the triangle and the lip of a broader “cup” formation.
A breakout attempt in December 2024 brought DOGE close to that level, but it was rejected, causing the price to retreat to $0.13 before recovering again.
The convergence of technical levels at $0.4916 makes it a pivotal area. A sustained break above this price point could act as a signal for a bullish continuation.
Traders are closely monitoring this level for signs of a breakout that could propel DOGE toward significantly higher valuations.
Between May 20th and May 26th, Dogecoin traded in a tight range around $0.22. The spike to $0.25 on May 23rd hinted at renewed momentum, though prices pulled back slightly.
The 4.1% increase in the past 24 hours shows DOGE’s ability to bounce from support, while the 5% weekly gain underlines consistent buying interest despite intermittent pullbacks.
Market sentiment suggests that a daily close above $0.50 could trigger a wave of bullish momentum. This would not only break the triangle but also mark the end of what analysts call a “long squeeze,” positioning Dogecoin for a potential rally.
On-chain data supports the price trend. In the past week:
While these on-chain trends do not guarantee a bull run, they do highlight increased engagement with the Dogecoin network. This rising activity is typically a precursor to stronger community interest and a potential rally.
If Dogecoin breaks out of the triangle and holds above $0.49, some technical analysts believe it could aim for a target as high as $3.08. This projection is based on the classic breakout model, adding the height of the triangle pattern to the breakout point.
DOGE Forming A ‘Triangle’ Pattern
Source: CoinMarketCap
Although the chart implies a strong move might be ahead, it’s worth noting that market psychology, trading volume, and transaction fees could act as friction.
For this reason, as well as a few others, seasoned traders urge caution. Confirmation of the breakout is essential before making large positions.
The bearish scenario would be confirmed if Dogecoin were to break below the triangle’s lower trendline, currently near $0.05. Such a move would negate the bullish triangle thesis and could lead to further declines.
Regardless, Dogecoin remains in a critical consolidation phase, squeezed between two converging trendlines. The next few closes, either above $0.49 or below $0.05, are likely to determine the meme coin’s medium-term direction. For now, it’s a waiting game.
Dogecoin’s price behavior and on-chain metrics suggest that something big could be on the horizon. Whether that’s a breakout or a breakdown remains to be seen, but the technical setup has traders and crypto enthusiasts keeping a close eye.
What is the significance of the $0.4916 resistance level for Dogecoin?
This level represents the upper trendline of the triangle pattern and a previous price peak. A breakout above this level could signal the start of a bullish trend.
How do on-chain metrics influence Dogecoin’s price?
Increased user engagement, as indicated by rising active addresses, can lead to higher demand and support price increases.
What should traders watch for in the coming days?
Traders should monitor for a daily close above $0.4916 or a drop below $0.05 to determine the next significant price move.
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