Dogecoin has formed a symmetrical triangle. Analysts expect it to break out soon, with key support at $0.22 and resistance at $0.25.
As of the time of writing, Dogecoin (DOGE) was trading below $0.23, down 4% in the last 24 hours, but remained flat on the weekly chart.
Meanwhile, trading volume exceeded $3 billion during the same period. The recent price action coincides with Dogecoin forming a symmetrical triangle on the 4-hour chart, a structure often associated with periods of price tightening.
Analyst Ali Martinez shared a chart showing the price nearing the lower boundary of the pattern. He commented, 'There may be one last drop before a breakout.'
Support is at $0.22, with resistance near $0.24. According to common retracement extensions, a breakout in this area could drop to $0.26, $0.28, and $0.31.
Martinez believes that if the current pattern persists, Dogecoin (DOGE) could rebound to $0.30. The price action is contracting near the apex of the triangle, which typically signals an impending change. However, if Dogecoin closes below $0.22, the pattern may be invalidated, with $0.209 and $0.19 becoming focal points.
Another analyst, Trader Tardigrade, analyzed the daily chart using Elliott Wave Theory. They noted that Dogecoin appears to be in a correction pattern consisting of five parts, typically labeled A to E.
According to their explanation, 'the momentum wave in the upward trend will follow this correction pattern.' This is consistent with previous market cycles, where trends continued after such corrections.
The pattern remains intact and is nearing its conclusion. As the price narrows within the structure, traders are watching for a confirmation of direction.
X's chart analyst Umair pointed out that the resistance level at $0.25 is a key area. He noted, 'If that resistance level is reclaimed, it will push the price of Dogecoin up to 31 cents,' but he added that if it fails to reclaim, the price of Dogecoin may retreat to $0.21 or $0.1949. This resistance level has been breached multiple times in recent months.
Technical indicators show that the Relative Strength Index (RSI) is close to 57, reflecting strong momentum, with no extreme buying pressure. The asset is currently between an upward support trend line and horizontal resistance level.
Volume remains average and has not confirmed a breakout. If it breaks above $0.25 and volume increases, it could validate the pattern.
MarketProphit indicates that sentiment around Dogecoin (DOGE) is mixed. While general trader sentiment is optimistic, the platform's proprietary model remains cautious. This divergence of opinion reflects the current market uncertainty.
Some industry developments may be attracting more attention. The Federal Reserve has relaxed its stance on regulating crypto banks.
Additionally, Thumzup has acquired Dogehash for $50 million. The company stated that this move will create the largest Dogecoin mining operation to date.
