Dogecoin Forms Repeating Falling Wedges Near Support as $5 Target Comes Into View

Dogecoin is garnering considerable attention as it repeatedly forms falling wedge patterns near the $0.15 support level, hinting at a potential bullish breakout.

Trading volume has surged, exceeding $822 million, as DOGE consolidates between $0.15 and $0.23 amidst growing market interest. A decisive break above $0.23 could validate targets ranging from $1.09 to $5 in the months ahead.

Dogecoin's ability to maintain support around $0.15, coupled with the recurring formation of falling wedge patterns on weekly charts, is drawing significant market attention. Historically, these patterns have often preceded substantial upward price movements. Currently trading at $0.1649, DOGE remains within a consolidation zone that many analysts interpret as a bullish setup.

Falling Wedges Suggest Potential Breakout

According to analysis by Trader Tardigrade, Dogecoin has established multiple falling wedges near its support level across several cycles. Each previous formation has been followed by a price increase. The current pattern exhibits three confirmed touches on the $0.1369 support level, with lower highs forming a descending resistance line.

This technical structure is taking shape within a larger descending triangle. While this pattern can sometimes indicate weakness in traditional markets, it often precedes breakouts in the cryptocurrency space. Tardigrade observed on X that "Dogecoin appears to be coiling like a spring," suggesting a possible rally above $1 by late 2025.

He pointed to Dogecoin’s 2024 rally from $0.093 to $0.48 as an example of a similar setup. DOGE is currently confined to a volume-defined range between $0.15 and $0.23. The price has demonstrated resilience within this structure, with long-term projections indicating the next Fibonacci extension level near $1.09.

Volume Increases as Traders Prepare for Next Move

Recent data reveals that DOGE trading volume has recently increased to over $822 million in a 24-hour period. This trend suggests renewed interest from traders in anticipation of a potential breakout. The Relative Strength Index (RSI) is hovering near neutral levels, and Moving Average Convergence Divergence (MACD) indicators remain relatively flat, which is typical during periods of low volatility preceding significant price movements.

According to BullifyX, Dogecoin may be gearing up for a "monster move," with potential price targets ranging from $1.09 to $5 in the coming months. The analyst highlighted a breakout scenario with a potential 5x–6x return, emphasizing the significance of the current wedge formations. Analysts recommend monitoring for a breakout above $0.17 and sustained closes above $0.23 to confirm a bullish continuation.