Dogecoin (CRYPTO: DOGE) has been flashing bullish signals across both short- and long-term charts, as the meme coin continues to build pressure ahead of a major move.

Here's a look at what happened and what could happen next.

What Happened: According to technical analysis shared by crypto analyst Ali Martinez on X, formerly Twitter, Dogecoin is forming an ascending triangle pattern on the 4-hour chart.

An ascending triangle is a bullish chart pattern that occurs when a security's price action creates a series of higher lows while a horizontal price level, acting as resistance, is tested but not broken.

Dogecoin is trading at a minimum price of $0.179 and a maximum price of $0.185, with the meme coin now trading just above the 50-period Exponential Moving Average (EMA) of $0.1761. The 50-period EMA helps traders identify the short-term trend direction of a security.

The Relative Strength Index is also slightly above the neutral 50 mark, with further upside potential remaining before the cryptocurrency would be considered overbought.

"A breakout above this level is needed to confirm the pattern and could propel Dogecoin towards the next Fibonacci level at $0.20, where the 0.786 Fibonacci is located," Martinez said.

Dogecoin is also trading close to key technical levels on the 1-month chart, with the coin testing the lower boundary of an ascending channel, according to the analyst.

"A move below this channel and the 0.786 Fibonacci level, currently around $0.20, could signal bearish pressure and technical structure breakdown," Martinez said.

If Dogecoin can close the month above the $0.20 level and the ascending channel, it may be able to heat up interest in the meme coin.

"Dogecoin is approaching a crucial juncture as it threatens to slip below the lower boundary of its long-term ascending channel on the 1-month chart," the analyst said.

"Moreover, it is nearing the 0.786 Fibonacci retracement level, which stands close to $0.20. A breach of this support could invite further downward pressure and ultimately lead to a cascade of technical indicators flashing red."

Related Link: Is Dogecoin A Good Investment?

Why It Matters: Dogecoin is the largest meme coin and is a cryptocurrency that has a strong following. The coin is up 138% year-to-date and is trading at a fraction of its all-time high of $0.74, which was reached in October 2021.

Dogecoin has been the subject of much interest from investors and institutions, including billionaire Elon Musk, who has spoken positively about the coin on several occasions.

Recently, an institution purchased a large amount of Dogecoin, which may have helped to keep the meme coin afloat.

Dogecoin is also the subject of several derivatives products, which could help to increase interest in the coin among traders.

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