Is a Dogecoin Surge Ahead? Analyst Predicts $3 Milestone Approaching

Since May 20, Dogecoin has remained above $0.22, making a recovery after a slight downturn. It reached $0.25 on May 23 before settling back over the weekend. In the past 24 hours, the cryptocurrency has seen a 4.1% increase, contributing to a 5% rise over the week, despite experiencing a midweek decline.

The Triangle Pattern

As noted by an analyst, Dogecoin has formed a lengthy, narrowing triangle since peaking at $0.73536 on May 3, 2021. Following this high, it dropped to $0.048 on June 13, 2022. Attempts to push lower, which occurred on June 5, August 14, and October 9 of 2023, have not succeeded. The triangle’s lines are converging, indicating that a significant price movement could occur once they intersect.

Key Resistance Levels

Market data indicates that the triangle’s upper trendline aligns with the peak of a substantial “cup” pattern near $0.4916. A breakout attempt was made in December 2024, where prices nearly reached this level before reversing. Following that, DOGE fell to $0.13 but has regained value since. However, surpassing the $0.4916 level remains critical for bulls to establish significant control.

Recent Price Moves

Throughout the period from May 20 to May 26, Dogecoin fluctuated around $0.22, hitting a high of $0.25 on May 23 before retreating. The latest 24-hour increase of 4.1% indicates a potential rebound from support levels, while the overall 5% growth for the week suggests consistent buying interest despite some midweek sell-offs. Traders are keenly observing for a daily close above $0.50, which would signal the end of the long squeeze.

On-Chain Metrics Rise

Supporting the price trends, on-chain metrics show significant increases. New addresses have surged by 102.40% in the last week, while active addresses rose by 111.32%. Additionally, addresses with zero balances increased by 155.45%. This suggests a rise in users engaging with small amounts of DOGE or exploring the network. Although it doesn’t confirm long-term holding, it indicates heightened interest and activity.

If Dogecoin manages to break through the upper trendline and sustain a position above $0.49, there are projections for a rise towards $3.08. This target derives from combining the height of the triangle with the point of breakout. While this represents a significant leap, psychological factors and trading fees might impede such a rapid ascent. Nevertheless, the technical setup suggests that a strong movement could be imminent.

Remaining cautious is advisable at this point. It is prudent to wait for definitive confirmation before making aggressive trades. A drop below the lower trendline near $0.05 would paint a bearish scenario. Currently, Dogecoin finds itself at a pivotal crossroads, constrained between two significant trendlines. Traders and enthusiasts alike will be closely monitoring whether it can surpass $0.49 or falls below $0.05 to determine the next major price movement.

Featured image from Gemini Imagen, chart from TradingView