Dogecoin (DOGE/USD) Stalls as Market Awaits US Core PCE Inflation Data and X Money Launch

DOGE dipped by 2.5% in the first half of Tuesday as traders now move to lock in profits ahead of Friday's US Core PCE Inflation Data.

Dogecoin (DOGE/USD) price is showing signs of breaking out of a descending triangle pattern that could open the door for a 100% rally from recent lows, according to technical analysis by renowned cryptocurrency analyst Jake Wujastyk.

In his latest X, formerly Twitter, post, Wujastyk highlighted the potential for a significant move in Dogecoin as it attempts to break above the critical resistance zone of $0.24 and $0.25. This zone has seen multiple rejections of the cryptocurrency in the past.

"We've got Dogecoin consolidating in a very well-defined 4-5 cent range throughout May 2025," explained Wujastyk. "Key support is the 200-day EMA, and if that breaks, the next level is the psychological $0.20 handle. A move below $0.14 would be needed to signal a strong shift in the technical bias."

Dogecoin has been trading within a tight channel between the 200-day EMA and the $0.26 level, which was reached earlier this month. The technical outlook is bullish, with the price also forming a descending triangle pattern since the rally to $0.26.

"The technical setup is very bullish as we're setting up for a potential breakout of the descending triangle that formed since the rally to $0.26 earlier in December," he added.

The cryptocurrency is currently testing the $0.25 level, which has acted both as support and resistance over the past six months. The zone has seen multiple rejections of the coin in the past. However, the current price action suggests that Dogecoin could be breaking through this barrier.

"This level has been touched on multiple occasions in the past 6 months, acting both as support and resistance," noted Wujastyk. "We've seen sellers emerge at this point in December 2024, and buyers at this point in June 2024."

A breakout above this zone could clear the way for a rally to the next major resistance level at $0.35, which is the 38.2% Fibonacci retracement level of the 2023 bear market. This move would also represent an approximately 100% gain from the recent lows of around $0.14.

"A breakout above could open the door for a move to the 38.2% Fibonacci of the 2023 bear market around $0.35, which is the next major resistance level," the analyst stated.

However, if Dogecoin fails to hold above the 200-day EMA and drops below the psychological level of $0.20, it could signal a return to the recent lows in the $0.14 range.

"If the 200-day EMA fails to hold, we could see a return to the recent lows around $0.14, which were hit in December 2024," Wujastyk concluded.

Dogecoin has been struggling to gain momentum in recent months, as the broader cryptocurrency market has also faced headwinds. However, the recent breakout potential could be a positive sign for the meme coin.