Dogecoin ($DOGE) shows signs of an imminent breakout as it consolidates within a symmetrical triangle on the 1-hour chart.
This pattern, formed by converging trendlines, is often a precursor to a sharp move in either direction, with the resolution dependent on volume and momentum.
Traders are closely watching the price action as Dogecoin approaches the apex of this formation, where volatility is expected to increase significantly.
The symmetrical triangle has taken shape due to lower highs and higher lows, creating a narrowing range that signals a potential shift in trend.
The upper boundary of the triangle, acting as resistance, has rejected multiple price attempts to break higher, while the lower trendline has provided consistent support.
With each successive price movement, the range has become more compressed, reflecting declining volatility—a hallmark of a pending breakout.
Volume analysis supports the likelihood of an impending price movement. As is typical in a symmetrical triangle, trading volume has been steadily decreasing, indicating a state of market indecision. However, a breakout accompanied by a surge in volume would confirm the move’s direction.
If Dogecoin successfully closes a 1-hour candle above the resistance zone of $0.1760-$0.1780 with strong buying interest, bullish momentum could push the price toward key upside targets.
The first significant level stands at $0.1820, followed by $0.1880, with the possibility of extending toward the psychological resistance of $0.1950. On the other hand, a breakdown below $0.1700-$0.1720 could invalidate the bullish scenario, leading to a retest of support at $0.1660, $0.1620, and potentially $0.1580 if selling pressure intensifies.
Beyond the technical structure of the price chart, on-chain data reveals a striking divergence between price action and network activity. According to blockchain analytics firm Santiment, Dogecoin’s daily active addresses have surged by approximately 400%, reaching 395,000.
Despite the ongoing price downtrend, this spike underscores growing network engagement and heightened transactional demand. The most pronounced increase in activity occurred in early March, reflecting a wave of user participation that could signal a shift in market sentiment.
Historically, a surge in active addresses has often preceded price recoveries, as rising on-chain activity suggests accumulation by retail traders and larger investors.
The expansion of Dogecoin’s network usage points to potential resilience in the face of price declines, as increased wallet interactions indicate a growing user base.
\This trend and the tightening price structure suggest that Dogecoin could be approaching a pivotal moment. If on-chain fundamentals continue to strengthen and price action aligns with volume expansion, Dogecoin may be on the verge of a decisive breakout that could set the tone for its next major move.
