Dogecoin edged up on Friday, trading near $0.17 with a modest daily gain of 1.0%. However, trading volume has sharply declined, indicating caution among investors as DOGE approaches a crucial technical crossroads.

According to CoinMarketCap, Dogecoin has lost nearly 3% over the past week, with daily trading volume dropping 30% to around $678 million. This thin volume reflects weaker market participation and hesitation ahead of a potentially significant price move.

Caution increases as volume slides

On-chain metrics show that trading activity has decreased by 34%, signaling a lack of momentum among traders. Lower volume often precedes volatile price movements, as even small trades can significantly push DOGE up or down in thin market conditions.

Cryptocurrency analyst Ali, who is widely followed for technical insights, emphasizes that Dogecoin's current structure forms a symmetrical triangle, with lower highs and higher lows converging towards a breakout point.

Symmetrical triangle sets the stage

This triangle pattern extends from early 2024 to mid-2025, narrowing down, and according to chart analysis by Ali, its peak is expected to be reached in June 2025. Such patterns typically end with a decisive move, and traders are closely watching DOGE for signs of a breakout.

A daily close above $0.22 is seen as a bullish trigger that could push Dogecoin to $0.35 or $0.36, representing an increase of about 60% from current levels. On the negative side, a drop below $0.16 could open the door to a strong sell-off down to $0.10, marking a significant risk zone for holders.

What analysts expect

The forecast from Digital Coin Price is quite optimistic, predicting that DOGE could rise above $0.37 before the end of the year. Some even believe that Dogecoin could retest the all-time high of $0.74 in the upcoming bull cycle.

However, the short-term direction will depend on volume confirmation. Without strong buying interest, DOGE may remain stuck in a range-bound oscillation.

What could drive this move?

Market sentiment around Dogecoin often reflects the broader cryptocurrency landscape. A bullish move in Bitcoin or Ethereum could carry DOGE along. Buzz on social media and endorsements from notable figures, such as Elon Musk, have traditionally influenced Dogecoin's price, and any revival in such support could act as a bullish catalyst.

On the other hand, macroeconomic instability or another wave of cryptocurrency market corrections could add further pressure to DOGE's price. With key levels at $0.22 and $0.16 respectively acting as breakout and breakdown signals, the coming weeks may play a crucial role in determining Dogecoin's short-term trajectory.