Dogecoin has spent the past week hovering between $0.15 and $0.17, which is an extension of its lost momentum in October. Despite the overall weakness across the crypto market, technical analysis shows that the meme coin has maintained a firm footing near its support zone and resisted the broader bearish pressure by holding above $0.15.
Bitcoin’s recent price movements have set the tone for the rest of the market, but Dogecoin’s price action suggests that the token might be preparing for a reversal phase. A technical analysis from crypto analyst NekoZ on X has drawn considerable interest, as it points to a bullish setup forming on Dogecoin’s weekly chart.
Symmetrical Triangle Points To A Bullish Bounce
According to NekoZ, Dogecoin is currently trading within a massive symmetrical triangle pattern that has been forming for months. This pattern is visible on the weekly candlestick price chart, and the formation goes as far back as late 2024.
The weekly chart shows the price approaching the lower boundary of this structure, where there is a high possibility of a reversal. The price action within the triangle shows the creation of higher highs in October, and Dogecoin could undergo an explosive move in either direction. Given that the current structure has defended above $0.15, the setup is tilting toward a bullish breakout scenario.
The analyst’s chart highlights that a successful bounce from the current zone could drive Dogecoin’s price back towards the upper trendline. A sustained move above $0.18 could be the first sign of this possibility, especially if it is accompanied by an increase in trading volume.
New Impulse Wave Could Push DOGE To $0.35
Dogecoin’s price is hovering right within the circled region on the chart, which means that it is testing the lower support line of the triangle. The past few weekly candles show that buyers have defended the lower range, preventing a deeper correction.
If Dogecoin manages to bounce at the lower trendline, then the next outlook would be a push upwards. However, the meme coin still has a long climb ahead before testing the resistance area between $0.30 and $0.33.
A break above the upper trendline will effectively almost double its current value. Such a move would mark the start of a new impulse wave and signify the eventual break of the symmetrical triangle formation that has characterized Dogecoin’s price action since the beginning of the year. It would also open the path for a Dogecoin price outlook at $0.35 and above.
However, the symmetrical triangle’s completion move also depends on how fast Bitcoin can stabilize above $100,000 and the broader market sentiment turns risk-on again. At the time of writing, Dogecoin is trading at $0.1643, up by 0.5% in the past 24 hours.
Featured image from Getty Images, chart from Tradingview.com
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