Dogecoin (CRYPTO: DOGE) has managed to stay afloat above the $0.22 mark since May 20, showcasing resilience after a brief setback earlier in the week.

The meme coin touched a peak of $0.25 on May 23 before pulling back slightly heading into the weekend.

In the last 24 hours, DOGE is trading at $0.23, showing a 4.1% increase. Over the past week, the token has risen by 5% despite experiencing some weakness midweek.

What Happened

As highlighted by TradingView analyst Akbar Karimzsfeh, a long-term triangle pattern has been unfolding since Dogecoin’s all-time high of $0.73536 on May 3, 2021. The pattern demonstrates a narrowing price range as the coin has engaged in consolidation for nearly four years.

After attaining its peak in 2021, Dogecoin slid to a low of $0.048 on June 13, 2022. Since then, multiple attempts to break below this level have failed. Key test dates include June 5, August 14, and October 9 of 2023.

The triangle’s lines are converging, which usually anticipates a swift price move in either direction. The upper trendline of the triangle coincides with a large cup pattern apex at around $0.4916.

Technical Resistance Levels

Dogecoin made an attempt to breakout in December 2024, nearly reaching the $0.4916 mark before being rejected. Following that rejection, DOGE fell to $0.13 before recovering to current levels.

The $0.4916 level remains a critical hurdle for bullish momentum. Traders are looking for a daily candle close above $0.50 as confirmation that the long consolidation phase is ending.

Another analyst, Trader Tardigrade, identified a formation that could see DOGE rally toward the $0.4 mark. The expert highlighted that Dogecoin is forming its second leg of consolidation below the $0.25 resistance level within a week.

The first consolidation leg occurred after DOGE failed to break above the $0.25 resistance. Trader Tardigrade expects the coin to test this level several times before managing to breakout.

A shakeout below the $0.21 level may occur to remove weak traders from any upcoming move. If successful, the resulting rally could see the coin reach the $0.4 level last seen in late January.

On-Chain Activity Increases

Network activity data supports the bullish technical outlook. New addresses have soared by 102.40% over the past seven days. Active addresses also climbed by 111.32% during the same period.

Zero balance addresses rose by 155.45%, suggesting that more traders are engaging with the network or performing small transactions. While this doesn’t necessarily indicate long-term holding patterns, it signifies growing interest and activity in the cryptocurrency.

The RSI indicator is displaying a hidden bullish divergence on the daily chart. This pattern suggests that momentum is building for a potential bounce despite the price continuing to move sideways.

Dogecoin is forming a higher low while the RSI is setting a lower low, which usually indicates that strength is building. Analyst Ali Martinez highlighted the $0.26 level as a critical resistance to watch out for.

Breaking above the $0.26 level could signal the start of a new bullish phase for the meme coin. This level has acted as a consistent barrier in recent trading sessions.

If Dogecoin manages to break above the triangle’s upper trendline and manages to sustain itself above the $0.49 level, then some analysts believe that the next target could be around the $3.08 mark. This target is derived by adding the triangle’s height to the breakout point.

However, if Dogecoin fails to maintain the current support and pulls back further, then traders could anticipate a test of the lower trendline of the triangle, which is located at around $0.05. This level would represent a bearish scenario for the coin’s near-term outlook.

Dogecoin is currently trading with a market capitalization of $33.5 billion, placing it among the top cryptocurrencies by market value.