Dogecoin trades around $0.21 in August 2025 after rising 1.02% in 24 hours. The token has lost about 10% over the past week and 22% over the past month. Analysts say the compression pattern indicates the token may soon break out with a strong gain of about 40%.

The market structure forms a descending triangle, with previous resistance near $0.24 and support near $0.22. Analysts note that this pattern often precedes significant volatility.

Dogecoin Compressed Within Triangle Pattern

Analysts describe the current pattern as a descending triangle. This pattern forms when lower highs touch a horizontal support level. Dogecoin is trading within this structure near $0.21 at the time of writing.

Trading activity is quite subdued. Analysts indicate that declining volume during consolidation often signals volatility. They expect a breakout to occur as the triangle pattern reaches its apex.

If buyers regain upward momentum, the price of Dogecoin could return to $0.29. Failing to hold the support level risks a drop to $0.19, a level consistent with key Fibonacci retracement points.

Short-Term Outlook Guided by Technical Signals

The 12-hour chart highlights Fibonacci retracement levels shaping sentiment. The 0.5 retracement level near $0.22 has provided support at the time of writing.

Analysts say this level often acts as a support point during corrections. Resistance has appeared near the 0.618 retracement level around $0.23, where recent uptrends have stalled.

If the 0.5 retracement fails, analysts anticipate the price will slide to the 0.236 retracement near $0.19. Bollinger Bands and the Moving Average Convergence Divergence (MACD) indicator suggest volatility potential.

Bollinger Bands have expanded in previous volatility bursts, while the MACD line often signals momentum reversals. These tools indicate that the market is preparing for another strong surge.

The volume trend has reinforced this expectation. Analysts note that subdued trading activity often reflects hesitation, but when combined with narrowing, it has set the stage for a breakout price determination.

Analysts Maintain Long-Term Dogecoin Price Target

On higher time frames, analysts point to a series of lower lows since the beginning of 2025. They state that this pattern indicates the long-term uptrend remains intact despite recent pressures.

Shan Specter, a market analyst, notes that Dogecoin is maintaining a constructive structure. He suggests that the consolidation phase could serve as a reset before further expansion.

Spectre predicts Bitcoin’s potential cycle target to be between $0.70 and $1.30. He suggests that continued support from entrepreneur Elon Musk is a factor sustaining long-term investor interest.

The weekly chart reinforces this view. The MACD line shows that the bullish momentum is flat, but higher lows still maintain the structure. Bollinger Bands indicate that volatility could return by the end of the year.

Outlook Focused on Breakout Direction

The price of Dogecoin has faced an important test. The descending triangle pattern will determine the short-term trend, while the longer time frame structures keep the overall trend constructive.

If buyers regain control, analysts expect the price to return to $0.29 before reassessing. If sellers breach the support level, the next significant level will be near $0.19.

At the time of reporting, Dogecoin is priced near $0.21. Analysts say the upcoming breakout will determine the token's direction in the coming months.