Dogecoin has formed a symmetrical triangle. Analysts expect it to break out soon, with key support at $0.22 and resistance at $0.25.
Dogecoin is forming a triangular pattern, with analysts closely monitoring the resistance at $0.25 and support at $0.22.
The price is compressing near the breakout area, indicating a possible move to $0.31 or a drop to $0.19.
Fluctuations in market sentiment and the continuous rise of cryptocurrencies are fueling the tightening price trend of Dogecoin.
Price action and key levels
As of the time of writing, Dogecoin (DOGE) is trading below $0.23, down 4% in 24 hours, but remains flat on the weekly chart.
Meanwhile, trading volume exceeds $3 billion during the same period. The recent price trend coincides with Dogecoin forming a symmetrical triangle on the 4-hour chart, a structure typically associated with periods of price tightening.
Analyst Ali Martinez shared a chart showing the price close to the lower boundary of the pattern. He commented, "There may be one last drop before the breakout."
Support is at $0.22, with resistance around $0.24. Based on common retracement extensions, a breakout of this area could drop to $0.26, $0.28, and $0.31.
Analysts' technical outlook
Martinez believes that if the current pattern continues, Dogecoin (DOGE) could rebound to $0.30. The price action is contracting near the triangle's apex, which usually signals an impending change. However, if Dogecoin closes below $0.22, the pattern may break, 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 impulse wave in an uptrend will follow this correction pattern." This aligns 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 directional confirmation.
$0.25 resistance level and market setup
Chart analyst Umair points out that the resistance level at $0.25 is a key area. He notes, "If this resistance level is reclaimed, it will push the price of Dogecoin up to 31 cents," but adds that if it is not reclaimed, Dogecoin may fall back to $0.21 or $0.1949. This resistance level has been broken multiple times in recent months.
Technical indicators show that the Relative Strength Index (RSI) is close to 57, reflecting strong momentum without extreme buying pressure. The asset is currently between an ascending support trendline and a horizontal resistance level.
Volume remains average, and a breakout has not yet been confirmed. If $0.25 is broken with increasing volume, it could validate the pattern.
