Dogecoin (DOGE) has been fluctuating within a narrow range between $0.15 and $0.16 over the past few days, resulting in the formation of a symmetrical triangle on the 4-hour time frame chart, following a downward correction wave that began in early April.
Indicators show the coin recovering from last month's losses, having recently recorded a higher low, which enhances the likelihood of a near-term upward breakout of the upper trend line in the technical pattern.
Technical analysis indicates a transition for Dogecoin from a sharp decline in late March and early April to a period of consolidation and hesitation between buying and selling forces in the last two weeks.
This triangular pattern reflects a state of cautious balance among speculators, as buyers lack the momentum to break through higher levels, while sellers show no desire to break support downwards. As the price movement range narrows, the likelihood of a breakout increases soon – often in an unexpected direction.
A 2.77% increase in trading volume over the past 24 hours indicates rising momentum, enhancing the likelihood of a positive breakout.
Analyst 'Tardigrade' believes that Dogecoin is preparing for a strong upward wave that could erase its recent losses, expecting a familiar pattern: hesitation, followed by a pullback, and then an upward explosion.
To achieve this scenario, the coin must close a strong candle above the upper trend line of the triangle. Tardigrade expects Dogecoin to reclaim the $0.20 level before the end of the month if the breakout is confirmed.
The coin started April at $0.166, and if it manages to surpass $0.20 and hold above it, it could end the month with an ideal technical performance that boosts investor confidence.