Dogecoin Faces 60% Price Swing Potential as Key Range Looms

Dogecoin (DOGE), a popular memecoin, is currently under scrutiny due to its potential for a significant price movement. According to crypto analyst Ali Martinez, DOGE could be on the verge of a 60% price swing if it breaks out of its current key price range within the next few days. Martinez highlighted a symmetrical triangle pattern forming on the daily chart, a structure that typically precedes a strong breakout, although the direction of the breakout is not predetermined.

Martinez noted that Dogecoin is currently confined between $0.16 and $0.22, and the direction of the breakout from this range could set the trend for the coming weeks. "Dogecoin looks prime for a 60% price move," Martinez stated. "All you need to do is wait for a daily close outside of the $0.16 to $0.22 range to determine the direction of the trend." As of the latest update, DOGE is trading at $0.1702, showing minor strength on the day. However, Dogecoin has faced a challenging period recently, with its price slipping by over 10% in the past week and down by more than 23% for the month. Despite this, it remains the 9th largest cryptocurrency by market value, with a market capitalization of approximately $25.49 billion.

One notable aspect is the decline in trading volume. In the last 24 hours, Dogecoin's volume has decreased by over 11% to just under $905 million, indicating that traders are adopting a wait-and-see approach, anticipating a clear breakout before making significant moves. Martinez's chart analysis shows Dogecoin tightening within a triangle pattern, with its price near the lower edge. Historically, similar setups have often led to substantial breakouts. For instance, in early 2024, DOGE experienced a strong run after breaking out of a similar pattern.

If the price closes convincingly above $0.22, the next resistance zone could be between $0.35 and $0.38. Conversely, a daily close below $0.16 could trigger a deeper pullback toward $0.13, especially if Bitcoin starts to decline from its current level above $109,000. Dogecoin's price movements have often been influenced by external factors, such as comments from Elon Musk or broader meme trends, which can rapidly alter the market narrative. This unpredictability has led many traders to remain cautious despite the current technical setup.

The pattern and range are clearly defined, but without a decisive breakout and corresponding volume, the situation remains uncertain. DOGE has demonstrated its ability to move quickly in the past, but the current broader market conditions are not providing the necessary spark. Until there is a clear change, the price is likely to continue bouncing within the triangle, with $0.16 and $0.22 acting as critical levels to monitor.