The daily chart of Dogecoin (DOGE) shows that this 'meme coin' may be brewing a recovery after several months of decline. Dogecoin is trading around $0.17, with a slight pullback during the session, and the 14-period Relative Strength Index (RSI) is at 35.72, slightly above the oversold area. Technical analysts point out that Dogecoin is about to face a critical moment, with the price potentially experiencing volatility of up to 60%, depending on the performance of breakouts from the key range.
Dogecoin approaches the end of the triangular pattern
Analyst Ali Martinez published an article interpreting Dogecoin's current trend from a technical analysis (TA) perspective and shared its daily price chart. The chart shows that Dogecoin's price has been fluctuating within a triangular channel over the past several months. The triangular pattern is a common formation in technical analysis, characterized by price consolidation between two converging trend lines, with the upper trend line acting as resistance and the lower trend line providing support. A breakout from either trend line typically indicates that the price will continue in that direction.
Triangular patterns can be classified into various types, including symmetrical triangles, ascending triangles, and descending triangles. In a symmetrical triangle, the two trend lines converge towards the center at a similar slope, with price fluctuations gradually narrowing. In an ascending triangle, the upper trend line is parallel to the time axis, forming higher lows; in a descending triangle, the opposite occurs, with lower highs and a flat support level. From the Dogecoin chart, its triangular pattern appears close to a symmetrical triangle but slightly tilted downward.
Currently, Dogecoin's price is approaching the apex of the triangle, a stage that typically signifies an impending breakout, as the price fluctuation range significantly narrows. Martinez analyzes that based on the current formation, Dogecoin is expected to achieve a price increase of 60%.
The key range determines the breakout direction
The direction of the breakout depends on whether Dogecoin can break through the key price range of the triangle. Martinez points out that investors need to pay attention to whether the daily closing price breaks through the range of $0.16 to $0.22. If the price breaks above $0.22, it may trigger significant gains; if it falls below $0.16, it may continue the downward trend.
As of the time of writing (June 20, 2025), the price of Dogecoin is approximately $0.168, having dropped over 11% in the past week. Despite the weak short-term performance, the technical pattern suggests it may be at a turning point. Investors should closely monitor breakouts in the range of $0.16 to $0.22 to assess the future trend direction.
