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Will Dogecoin rise 40%? The chart shows action is needed.
Dogecoin is currently trading in a symmetrical triangle pattern on the 12-hour chart. This pattern consists of lower highs and higher lows, creating a narrow price range. This pattern often appears before the price moves significantly in either direction. At the time of writing, DOGE is trading around $0.22, near the midpoint of the triangle. According to the chart shared by analyst Ali Martinez, the peak of this pattern is expected to form by the end of August. Traders are closely monitoring any breakout above or below the range of the triangle, which could indicate a volatility level of up to 40% from the breakout point.
Support and Resistance Levels to Watch The boundaries of the triangle are determined by the key Fibonacci retracement levels. The 0.618 level is at $0.233 and is currently acting as a resistance threshold. On the other hand, the 0.5 retracement level at $0.218 serves as a short-term support threshold. If the price breaks above the threshold of $0.233, it could trigger a bullish move towards the range of $0.255–$0.287. However, if the price falls below $0.218, it could drop to $0.204 or even lower. These thresholds are considered short-term indicators for the market trend. Monthly Chart Shows Repeated Price Structure A separate analysis from Trader Tardigrade shows a long-term pattern on the monthly chart of DOGE/USD. The chart displays a rounded bottom, followed by a stable upward channel, similar to previous cycles. Dogecoin has followed this structure in the past before a strong upward move. According to the chart, DOGE is currently at the bottom of the ascending channel. This pattern is similar to the pattern seen before previous price increases. "The chart shows that the platform has been established and DOGE may be preparing for the next price increase," the analyst said.
Market Psychology and Trading Activities The 24-hour trading volume of Dogecoin is currently around $2.79 billion, reflecting positive interest from the market. The price has decreased by 1% in the past 24 hours and 2% over the past seven days. However, traders are still focused on the narrowing triangle pattern and a potential breakout. Analysts are anticipating a surge in trading volume as confirmation for the next move. A clear breakout above the current range, supported by strong buying or selling pressure, could support the proposed 40% price volatility level in technical forecasts. Although previous cycles have followed a similar trend, some traders remain cautious. "There is no guarantee that this pattern will repeat," one user noted, reflecting a cautious outlook as the market awaits a clear signal.