TLDR
- Dogecoin has formed a long triangle pattern since its 2021 all-time high, with analysts predicting an imminent breakout
- The token faces key resistance at $0.4916, with some analysts targeting $3.08 if it breaks above this level
- On-chain metrics show rising activity with new addresses up 102% and active addresses climbing 111% in seven days
- Technical analysis reveals a hidden bullish divergence on the RSI indicator suggesting upward momentum
- Current price action shows DOGE holding above $0.22 support with recent 4.1% daily gains
Dogecoin traders are watching closely as the popular meme coin approaches what analysts believe could be a decisive breakout moment. The token has been consolidating in a tightening triangle pattern for nearly four years since reaching its all-time high.
According to TradingView analyst Akbar Karimzsfeh, Dogecoin has been tracing a long triangle formation since hitting $0.73536 on May 3, 2021. Following that peak, the token dropped to $0.048 on June 13, 2022. Since then, multiple attempts to break lower have failed.
The triangle’s upper trendline aligns with a large cup pattern around $0.4916. This level represents a critical resistance point that Dogecoin must overcome for bulls to take control.
Recent price action shows the token holding steady above $0.22 since May 20. It climbed to $0.25 on May 23 before pulling back into the weekend. The last 24 hours brought a 4.1% gain, while the weekly performance shows a 5% increase despite midweek volatility.
Growing Network Activity
On-chain data supports the bullish thesis with network metrics showing increased activity across multiple categories. New addresses jumped 102.40% over the past seven days. Active addresses climbed 111.32% during the same period.
Zero balance addresses increased by 155.45%, suggesting more users are testing the network or sending small amounts. While this doesn’t guarantee long-term holding, it indicates growing interest and engagement with the Dogecoin network.
Technical Indicators Align
Crypto expert Trader Tardigrade has identified what appears to be the second consolidation leg below the $0.25 resistance level. The analyst expects Dogecoin to break through this barrier following a potential shakeout below $0.21 to remove weak hands.
#Dogecoin appears to be forming the second leg in consolidation below a resistance zone and may break through after a shakeout.
The next $DOGE target remains $0.4 https://t.co/E3NO9OuV1X pic.twitter.com/QY6W1eAS9a— Trader Tardigrade (@TATrader_Alan) May 25, 2025
The technical analysis reveals a hidden bullish divergence on the Relative Strength Index. This pattern shows the token forming a higher low while the RSI creates a lower low, typically indicating building momentum for an upward move.
Another analyst, Ali Martinez, points to $0.26 as a crucial resistance wall. Breaking this level could signal the start of a new bullish phase for the meme coin.
This level remains the most important resistance wall for #Dogecoin $DOGE! pic.twitter.com/5VyujKwCjP
— Ali (@ali_charts) May 25, 2025
If Dogecoin successfully breaks above the triangle’s upper trendline and holds above $0.49, some analysts see a potential move toward $3.08. This target comes from adding the triangle’s height to the breakout point.
The current market cap sits at $33.5 billion as traders position for the potential breakout. Price action remains contained between key support at $0.05 and resistance around $0.49.
Dogecoin attempted a breakout in December 2024, nearly reaching the $0.4916 resistance before falling back to $0.13. The token has since recovered ground but still needs to clear that critical hurdle.
Recent trading shows the meme coin testing the $0.25 level multiple times before consolidating lower. This pattern of repeated tests often precedes breakouts in technical analysis.
The combination of tightening triangle geometry, improving on-chain metrics, and bullish technical divergences creates what analysts view as a setup for potential upward movement. Current price action shows DOGE bouncing from support levels with steady buying interest despite periodic pullbacks.
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