Dogecoin Price Poised for Growth: Here’s Why

Dogecoin has been experiencing a downward trend recently, drifting back down toward the mid-$0.13 range. Sellers have dominated the market in the past day, and every attempt to bounce back has been quickly thwarted, leaving Dogecoin near its lower trading range. However, one cryptocurrency analyst on X has pointed out a significant technical level on the 2-day chart that suggests a potential upside for Dogecoin. Despite the weak price movement, Dogecoin is currently resting on a long-term support area within a descending triangle pattern, which could serve as a launchpad for a strong upward movement if buyers engage.

Key Takeaways

Dogecoin is currently trading around the mid-$0.13 range after recent declines.
It is resting on a significant long-term support zone within a descending triangle pattern.
The price action shows tightening movements, indicating a potential imminent breakout.
A successful defense of the support area could lead to a surge, possibly reaching $0.4 in a rapid move.
Observing resistance levels around $0.25 to $0.26 will be crucial for traders.

Dogecoin

Technical Analysis of Dogecoin’s Price Movement

The technical analysis of Dogecoin's price action on the 2-day candlestick chart reveals that this popular meme coin has been forming a clear descending triangle since December 2024. A downward-sloping trendline has capped each rally this year, resulting in a series of lower highs that reflect persistent selling pressure. Concurrently, a horizontal support zone around the mid-$0.135 to $0.14 area has absorbed multiple declines, preventing a more severe fall.

Currently, Dogecoin is testing this lower support boundary again. The candle formations on the 2-day chart are clustering just above the dashed support line; the analyst, known as Butterfly on X, highlighted this clustering in green to emphasize how closely the price is tracking this level.

Dogecoin
Source: Chart from Butterfly on X

Each previous interaction with this support zone has resulted in at least a temporary bounce, making the current test significant. The price action is tightening, creating less room for sideways movement before a crucial breakout occurs.

Is Dogecoin Ready for a Surge?

In his post on X, the analyst emphasizes that this support level has been "respected multiple times" and believes bulls are "getting ready to step in." The key will be whether the lower support holds once more; a firm defense of this zone could mean sellers are losing momentum at these price levels. If that's the case, even a small wave of buying could quickly push Dogecoin back toward the descending resistance line situated between $0.25 and $0.26. A successful break and close above that trendline would signify the first clear higher high in months and confirm that the triangle has broken out to the upside.

The analyst's green arrow on the chart illustrates this possible trajectory. It shows Dogecoin moving from the current support zone, breaking above the resistance, and potentially reaching as high as $0.4 in a swift rally.

Dogecoin
DOGE trading at $0.13 on the 1D chart | Source: DOGEUSDT on Tradingview.com