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Dogecoin is currently trading at $0.1790 after a modest uptick from $0.16 in the past 48 hours. Although the meme coin has yet to break above the critical resistance at $0.237, its current price structure points to bullish momentum slowly building.
The last few weekly candles have revealed higher lows, a sign that the bulls may be preparing for another attempt to reclaim territory lost during the crash in early April. Interestingly, a technical analysis of Dogecoin’s weekly candlestick chart shows that the meme coin is well on track to a 1,600% price surge.
Decoding The Descending Triangle Breakout Spanning 2017-2025
A technical analysis of Dogecoin’s weekly chart shows that the cryptocurrency recently broke out of a long-standing descending triangle pattern, a formation that had been in place since 2017.
This pattern was formed by a flat support base between $0.0030 and $0.0040, repeatedly tested during the early years, and a descending resistance line that connected major lower highs at $0.069, $0.018, and $0.010.Â
After years of compression within the triangle, Dogecoin finally broke above this trendline with a powerful bullish candle in early 2021, supported by a notable increase in volume. That breakout led to an explosive rally to $0.737, but the price eventually entered a correction that brought it back to retest the original breakout region near $0.169.
According to this outlook, the majority of Dogecoin’s price action in 2023 and 2024 has been consolidations just above this breakout region in order to build a new base that now acts as a springboard for the next move.
A Break Above $0.237 Could Cause 1,600% SurgeÂ
The range between $0.130 and $0.237 has now formed a rectangular consolidation zone over the past two years. Although the Dogecoin price broke above this level in late 2024, it has since lost most of its gains and is now trading within this range. However, the current bullish candle shows Dogecoin approaching the top of this range.Â
If buyers manage to push the price above $0.237 with convincing volume, the move could cause a sharp continuation toward the next significant resistance around $0.400 to $0.450, just below where Dogecoin’s rally ended in late 2024. This projection is based on the measured move from the original triangle, adding its height to the breakout point near $0.169.Â
A strong market sentiment, especially with support from retail and institutional enthusiasm, could actually cause the Dogecoin price to extend further. The final measured move in this case is a 1,600% surge until it reaches a price target of $2.3727.
Despite the long-term bullish setup, caution is warranted, as Dogecoin could face another rejection in the short term. A rejection at $0.237 would likely bring the price back to test the lower support region around $0.150.
At the time of writing, Dogecoin is trading at $0.1794.
Featured image from Unsplash, chart from TradingView
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