Dogecoin (DOGE) Prepares to Breakout as Technical Signals Suggest a Familiar Pattern Might Be Forming

Dogecoin is once again drawing attention as technical signals on its weekly chart suggest a familiar pattern might be forming. A crypto analyst known as

Dogecoin (DOGE) is once again coming into the limelight as technical signals on its weekly chart suggest a familiar pattern might be forming.

Crypto analyst ‘Surf’ recently made an update on X, formerly Twitter, to highlight a potential breakout setup that looks similar to earlier ones which sent the coin soaring.

To elaborate, the coin’s long-term chart shows a falling wedge that formed between 2014 and 2016, setting the stage for the 2017 surge. A second wedge followed from 2018 to 2020, paving the way for the historic run in 2021. Now, with a third wedge forming, hopes are rising that history might be gearing up to repeat.

At present, Dogecoin is trading at around $0.228, placing it close to the upper boundary of the wedge. Past trends indicate that breaking through this upper line could lead to a substantial upward move for the coin.

This has market watchers talking about the coin potentially hitting $1, a level many in the community have long hoped for.

Responding to Surf’s analysis, one user said there’s “not much work left to be done before [Dogecoin] takes off.” Another X user, Mark, commented, “$1 is a magnet,” with Surf replying in full agreement.

Trader DK64Trades added more fuel to the bullish fire. He pointed out a key signal — whenever Dogecoin crosses above the 200 moving average on higher time frames, a strong rally usually follows. This, he believes, could push the coin beyond the $1 level during this cycle.

Dogecoin Bearish Signals Hint at Correction

At the same time, some warning signs remain.

As of now, Dogecoin is priced at $0.228 and has shown a string of Doji candles over the past four days. These usually signal indecision in the market. It continues to hold above a $0.20 support level, with the 200-day Exponential Moving Average acting as another support at $0.2178.

However, a double top pattern — often a bearish signal — has formed around the $0.25 supply zone and a resistance trendline stretching back to December. If DOGE closes below the neckline of this pattern at $0.2145, it could fall further, possibly revisiting the May low of $0.1667.

Adding to that pressure, the MACD indicator has moved beneath its signal line. That, along with bearish histograms, suggests sellers may have the upper hand for now. The Relative Strength Index has also dropped to 57, signaling fading strength among buyers.

If DOGE breaks above its current trendline, though, attention could shift to the $0.30 level. That mark has acted as both a support and resistance point in the past and might be a key target if momentum flips.