Dogecoin (DOGE) Holds Above $0.22 Since May 20

Dogecoin (DOGE) has held steady above $0.22 since May 20 and climbed back after a brief dip. It hit $0.25 on May 23, then eased into the weekend.

Dogecoin (CRYPTO: DOGE) is known for its lively community and meme-driven nature. Recently, the token has been quietly heating up, squeezing in a tight triangle pattern on the charts.

According to TradingView analyst Akbar Karimzsfeh, Dogecoin has been forming a gradually narrowing triangle since its all-time high of $0.73536 on May 3, 2021.

After reaching a peak of $0.73536 on May 3, 2021, Dogecoin experienced a steep decline, hitting a low of $0.048 on June 13, 2022.

Despite the significant price decrease, each attempt to break below the lower trendline of the triangle—on June 5, August 14, and October 9 of 2023— ultimately failed, suggesting strong buying pressure at lower levels.

As the lines of the triangle converge, the potential for a swift and substantial price movement is increasing.

Key Dogecoin Levels To Watch

According to technical analysis, the upper trendline of the triangle also coincides with the top of a large "cup" pattern, which is located around the price level of $0.4916.

Earlier, in December 2024, Dogecoin made an attempt to breakout from the cup pattern, with prices nearly touching the $0.4916 mark before being pushed back. Following this, Dogecoin experienced a slide, eventually decreasing to $0.13.

While Dogecoin has since managed to recover some of the lost ground, it still needs to clear the $0.4916 hurdle for bulls to gain complete control.

Recent Dogecoin Price Action

Dogecoin remained within a narrow range between May 20 and May 26, trading close to the $0.22 mark. The token reached a high of $0.25 on May 23 before slipping during the second half of the week.

In the last 24 hours, Dogecoin experienced a 4.1% increase, ultimately closing in on the lower trendline of the triangle. Over a week, it gained 5%, despite a midweek pullback.

On-Chain Data Shows Increased Activity

On-chain data from Glassnode indicates a surge in new and active addresses. Over seven days, new addresses soared by 102.40%, active addresses climbed 111.32%, and zero balance addresses went up 155.45%. This suggests more people are sending small amounts of DOGE or testing the network.

However, it doesn’t necessarily mean they’re holding long term. Still, it does highlight interest and activity.

If Dogecoin manages to break out above the top trendline and sustain itself above the $0.49 level, some analysts believe that the token could rally towards the $3.08 price target.

This prediction is based on the theory of adding the triangle’s height to the breakout point, which in this case would be around $0.49, to the upper vertex of the triangle, which is located at around $0.50.

However, it's important to note that such a rally could be slowed down by psychological factors and trading fees, especially considering the magnitude of the potential price increase.

As the lines of the triangle continue to close in on each other, the potential for a sharp move is becoming more likely.

According to one analyst, the picture might still be mixed, and it's best to wait for clear confirmation before placing any bets on a moonshot. A slip below the lower trendline, which is currently around $0.05, would make the picture bearish.

For now, Dogecoin remains in a crucial balance as it's squeezed between two key trendlines. All eyes will be on any daily candle close above $0.49 or fall below $0.05 to determine the next big move.