Dogecoin has returned to the spotlight as traders compare its current monthly chart to triangle patterns seen in 2017 and 2020. Analysts say the latest structure “could” point to another major price move, although DOGE has not confirmed a breakout.
DOGE fell 0.98% over the past 24 hours to $0.0833, while Bitcoin gained 0.84%. The difference shows that Dogecoin faced local selling pressure rather than a broad crypto market decline. Traders now monitor the $0.08 support level, the monthly trendline and resistance between $0.085 and $0.09.
Dogecoin’s monthly chart shows price moving between narrowing support and resistance lines. This structure has created a large triangle that appears close to its apex. Similar patterns appeared before major DOGE rallies in 2017 and 2020, according to chart analysts.
In both earlier periods, the tip of the triangle reached a long-term trendline before Dogecoin recorded stronger price action. The current setup has reached a similar area. Some traders said the pattern may support a future breakout if buyers defend the rising trendline.
Nevertheless, historical chart patterns do not confirm future price moves. Different liquidity levels, market conditions and investor activity can change how a setup develops. DOGE would need to break above resistance with stronger trading volume to confirm an upward move.
Momentum data also presents mixed signals. The Relative Strength Index remains near levels linked with earlier market bottoms, while other indicators still show weak short-term momentum. Therefore, traders continue to treat the monthly pattern as an unconfirmed setup.
Dogecoin tested the $0.09 resistance area on June 20 but failed to hold its gains. Price later moved below $0.085, which had acted as support for several sessions. DOGE then dropped toward $0.081 before recovering slightly to $0.0833.
The failed move above $0.09 turned the $0.085 to $0.09 range into a key resistance zone. Large spot sell orders were also reported between $0.088 and $0.09. Analysts said these orders “could” limit a near-term recovery unless buying volume increases.
Meanwhile, derivatives activity added pressure to the decline. A long position worth about $149,000 was liquidated near $0.0833. Such liquidations can increase selling when leveraged traders must close positions after price moves below their risk levels.
Dogecoin also underperformed several other meme coins, which recorded mixed results. This suggests that DOGE’s decline came mainly from its own technical structure and limited buying interest. A recovery above $0.085 would place focus back on the $0.09 barrier.
The long-term ascending trendline near $0.08 has become the main level under review. If Dogecoin stays above this area, price could trade between $0.08 and $0.085 while buyers and sellers wait for clearer market direction.
A weekly close below $0.08 would weaken the current triangle structure. It could also shift attention toward $0.07 as the next support area. Some analysts have also discussed a possible retest of lower levels linked with Dogecoin’s 2022 market structure.
Separately, analysts reported a “possible” hidden bullish divergence near lower support zones. This pattern occurs when price holds a higher low while a momentum indicator records a lower low. Traders use it to track whether selling pressure is slowing, but it does not confirm a reversal.
Bitcoin’s direction may also affect DOGE. Stability above $64,000 could help reduce pressure across the crypto market. Still, Dogecoin must defend $0.08 and reclaim $0.085 before traders can identify stronger signs of a near-term recovery.
Also Read: Why Dogecoin’s Silent Accumulation Could Lead to a Big Price Move