Dogecoin Gains 1.0% to $0.17 Amid 30% Volume Drop

Dogecoin, the popular cryptocurrency, experienced a slight increase to $0.17 on Friday, marking a 1.0% gain over the past 24 hours. However, trading activity has been relatively subdued this week, with Dogecoin slipping almost 3% over the past seven days. This decline in trading volume, which dropped by 30% to about $678 million, indicates a cautious approach from investors. On-chain data reveals that the 34% slide in daily volume suggests a loss of momentum in the market.

Market analysts have noted that low trading volume often leads to price volatility, where even modest buying or selling can cause significant price movements. This phenomenon is known as whipsaws, where prices can sharply fluctuate in either direction due to the lack of liquidity.

Crypto analyst Ali has identified a symmetrical triangle pattern in Dogecoin's price chart, stretching from early 2024 to mid-2025. This pattern is characterized by lower highs and higher lows, with converging trendlines. According to Ali, this narrowing range often precedes a major price movement. The tip of the triangle is expected by June 2025, indicating that volatility should pick up around this time.

Ali's analysis suggests that a daily close above $0.22 could signal a bullish breakout, potentially pushing Dogecoin's price to roughly $0.35 or $0.36, which is about 60% higher than its current levels. Conversely, a drop below $0.16 could trigger a sell-off, driving the price down to around $0.10. Investors are closely monitoring these levels to make informed decisions about entering or exiting their positions.

Digital Coin Price, a cryptocurrency forecasting platform, has predicted that Dogecoin could surpass $0.37 by the end of the year and potentially retest its previous high of $0.74. This optimistic forecast is based on the assumption that market catalysts, such as a surge in Bitcoin or Ethereum prices, social media buzz, or endorsements from influential figures, could drive Dogecoin's price higher.

For now, traders are advised to exercise patience as they wait for a clear direction in the market. Volume confirmation will be crucial in determining whether Dogecoin will break out above $0.22 or drop below $0.16. Until then, expect choppy range-bound action as the symmetrical triangle pattern tightens. The next few weeks will be critical in determining Dogecoin's future price movement, with the potential for a strong rally or a deeper correction depending on market conditions and investor sentiment.