Dogecoin Gains 5% Weekly Amid Triangle Pattern Breakout Attempt

Dogecoin has been forming a triangle pattern since its 2021 all-time high of $0.73536, with analysts closely monitoring for a potential breakout above $0.49. The meme coin has shown resilience, maintaining its position above $0.22 since May 20, despite a brief dip earlier in the week. Over the past 24 hours, Dogecoin has gained 4.1%, and over the past week, it has increased by 5%.

Technical analysts have identified a long-term triangle pattern that began forming after Dogecoin’s all-time high in May 2021. This pattern shows a tightening range as the coin has consolidated over nearly four years. The triangle’s lines are converging, which typically precedes a sharp price movement in either direction. The upper trendline of the triangle aligns with a large cup pattern around $0.4916, a critical hurdle for bullish momentum.

Dogecoin attempted a breakout in December 2024, nearly reaching the $0.4916 mark before being rejected. Following that rejection, DOGE fell to $0.13 before recovering to current levels. Traders are watching for a daily close above $0.50 as confirmation that the long consolidation phase is ending. Another analyst has outlined a formation suggesting DOGE could rally toward $0.4. The expert notes that Dogecoin is forming its second leg of consolidation below the $0.25 resistance level within a week.

The first consolidation leg occurred after DOGE failed to break above $0.25 resistance. The expert expects the coin to test this level multiple times before achieving a breakout. A shakeout below $0.21 may occur to remove weak holders before any upward move begins. If successful, the resulting rally could target the $0.4 level last seen in late January.

Network activity data supports the bullish technical outlook. New addresses have jumped 102.40% over the past seven days. Active addresses climbed 111.32% during the same period. Zero balance addresses increased by 155.45%, suggesting more users are testing the network or making small transactions. While this doesn’t guarantee long-term holding patterns, it indicates growing interest and activity.

The RSI indicator shows a hidden bullish divergence on the daily chart. This pattern suggests growing momentum for a potential bounce even as prices continue to fluctuate. Dogecoin is forming a higher low while the RSI creates a lower low, which typically indicates underlying strength. Analysts have highlighted $0.26 as a critical resistance level to watch. Breaking above $0.26 could signal the start of a new bullish phase for the meme coin. The level has acted as a consistent barrier in recent trading sessions.

If Dogecoin successfully breaks above the triangle’s upper trendline and holds above $0.49, some analysts project a move toward $3.08. This target is calculated by adding the triangle’s height to the breakout point. A failure to maintain current support could see DOGE test the lower trendline near $0.05. This level would represent a bearish scenario for the coin’s near-term outlook.

Dogecoin currently trades with a market capitalization of $33.5 billion, holding its position as one of the top cryptocurrencies by market value. Key resistance levels remain at $0.25, $0.4, and $0.49, with support holding around $0.21-$0.22. The potential rally target of $3.08, according to the analyst's forecast, is based on the triangle pattern analysis, which shows a potential breakout above the triangle’s upper trendline.