Dogecoin Surges 5% Weekly Amid Technical Pattern and Increased Activity

Dogecoin has maintained a steady position above $0.22 since May 20, experiencing a brief dip before climbing back. On May 23, it reached $0.25, and then eased into the weekend. Over the last 24 hours, the token has seen a 4.1% increase, and over a week, it has risen by 5%, despite a midweek slip.

According to TradingView analyst Akbar Karimzsfeh, Dogecoin has been forming a long, tightening triangle pattern since its all-time high of $0.73536 on May 3, 2021. Following this peak, the token dropped to $0.048 on June 13, 2022. Since then, attempts to break lower on June 5, August 14, and October 9 of 2023 have all failed. The lines of the triangle are closing in, suggesting a sharp move is likely when they meet.

The upper trendline of the triangle aligns with the top of a large “cup” pattern around $0.4916. There was an attempted breakout in December 2024, with prices almost hitting the $0.4916 mark before being pushed back. Subsequently, Dogecoin slid down to $0.13 but has since recovered some ground. However, it still needs to clear the $0.4916 hurdle for bulls to gain real control.

Dogecoin hovered around $0.22 between May 20 and May 26, peaking at $0.25 on May 23 before slipping afterward. The 4.1% gain in the last 24 hours indicates it can bounce from support. The 5% weekly rise suggests steady buying, despite some midweek pullbacks. Traders are watching for a daily close above $0.50 as a sign that the long squeeze is over.

On-chain data supports the price action. New addresses have increased by 102.40% in the past seven days, active addresses climbed 111.32%, and zero balance addresses went up 155.45%. This suggests higher interest and activity, with more people sending small amounts of DOGE or testing the network. While this does not guarantee long-term holding, it indicates increased engagement.

If Dogecoin can break above the top trendline and hold above $0.49, some analysts see a potential move toward $3.08. This target is based on adding the triangle’s height to the breakout point. However, psychology and trading fees could slow this run. The pattern suggests a strong move may be coming, but caution is advised. A slip below the lower trendline near $0.05 would turn the picture bearish. For now, Dogecoin is in a balancing act, squeezed between two key trendlines. Traders and fans will be watching every close above $0.49 or fall below $0.05 to gauge the next big move.