Dogecoin traders are keeping a close eye on the meme coin as it approaches what analysts believe could be a decisive breakout moment. The token has been consolidating in a tightening triangle pattern for nearly four years since reaching its all-time high.

According to TradingView analyst Akbar Karimzsfeh, Dogecoin (CRYPTO: DOGE) has been tracing a long triangle formation since hitting $0.73536 on May 3, 2021. Following that peak, the token dropped to $0.048 on June 13, 2022. Since then, multiple attempts to break lower have failed.

The triangle’s upper trendline aligns with a large cup pattern around $0.4916. This level represents a critical resistance point that Dogecoin must overcome for bulls to take control.

Recent price action shows the token holding steady above $0.22 since May 20. It climbed to $0.25 on May 23 before pulling back into the weekend. The last 24 hours brought a 4.1% gain, while the weekly performance shows a 5% increase despite midweek volatility.

On-chain data supports the bullish thesis with network metrics showing increased activity across multiple categories.

New addresses jumped 102.40% over the past seven days. Active addresses climbed 111.32% during the same period.

Zero balance addresses increased by 155.45%, suggesting more users are testing the network or sending small amounts. While this doesn’t guarantee long-term holding, it indicates growing interest and engagement with the Dogecoin network.

Crypto expert Trader Tardigrade has identified what appears to be the second consolidation leg below the $0.25 resistance level. The analyst expects Dogecoin to break through this barrier following a potential shakeout below $0.21 to remove weak hands.

The technical analysis reveals a hidden bullish divergence on the Relative Strength Index. This pattern shows the token forming a higher low while the RSI creates a lower low, typically indicating building momentum for an upward move.

Another analyst, Ali Martinez, points to $0.26 as a crucial resistance wall. Breaking this level could signal the start of a new bullish phase for the meme coin.

If Dogecoin successfully breaks above the triangle’s upper trendline and holds above $0.49, some analysts see a potential move toward $3.08. This target comes from adding the triangle’s height to the breakout point.

The current market cap sits at $33.5 billion as traders position for the potential breakout. Price action remains contained between key support at $0.05 and resistance around $0.49.

Dogecoin attempted a breakout in December 2024, nearly reaching the $0.4916 resistance before falling back to $0.13. The token has since recovered some of those losses but still needs to clear that critical hurdle.

Recent trading shows the meme coin testing the $0.25 level multiple times before consolidating lower. This pattern of repeated tests often precedes breakouts in technical analysis.

The combination of tightening triangle geometry, improving on-chain metrics, and bullish technical divergences creates what analysts view as a setup for potential movement in one direction or the other. Current price action shows DOGE bouncing from support levels with steady buying interest despite periodic pullbacks.