Dogecoin on the verge, Analyst predicts a 60% increase if it breaks the $0.22 level

Dogecoin rose slightly on Friday, trading near $0.17 with a modest increase of 1.0% daily. However, the trading volume has fallen sharply, indicating caution among investors as DOGE approaches a critical technical crossroads. According to CoinMarketCap, Dogecoin has lost nearly 3% in the past seven days, with daily trading volume falling 30% to around $678 million. This thin volume reflects weaker market participation and hesitation ahead of a potentially significant price move.

Caution increases as volume falls On-chain data shows that trading activity has fallen by 34%, signaling a lack of momentum among traders. Lower volume often precedes volatile price movements, as even small trades can cause DOGE to rise or drop sharply in thin market conditions. Crypto analyst Ali, who is followed by many for his deep technical insights, emphasized that the current structure of Dogecoin is forming a symmetrical triangle, with lower highs and higher lows converging towards a breakout point. Symmetrical triangle sets the stage This triangle pattern extends from the beginning of 2024 to mid-2025, narrowing down, and according to Ali's chart analysis, its peak will be reached in June 2025. Such patterns often end with a decisive move, and traders are closely monitoring DOGE for signs of a breakout. A daily closing level above $0.22 is considered a bullish trigger, potentially pushing Dogecoin up to $0.35 or $0.36, representing an increase of about 60% from the current level. On the negative side, a drop below $0.16 could open the door for a strong sell-off to $0.10, marking a significant risk area for holders. What analysts expect The forecast from Digital Coin Price is quite optimistic, predicting that DOGE could rise above $0.37 before the end of the year. Some even believe that Dogecoin could re-test its all-time high of $0.74 in the upcoming bull cycle. However, the short-term direction will depend on the confirmation of volume. Without strong buying interest, DOGE may still remain stuck in a range-bound oscillation. What could drive this movement? Market sentiment surrounding Dogecoin often reflects the broader cryptocurrency landscape. A price surge in Bitcoin or Ethereum can push DOGE along with it. The buzz on social media and endorsements from prominent figures, such as Elon Musk, have traditionally influenced the price of Dogecoin, and any resurgence in such support could serve as a catalyst for price increases. On the other hand, macroeconomic instability or another wave of adjustments in the cryptocurrency market could add further pressure on the price of DOGE. With important levels at $0.22 and $0.16 respectively serving as breakout and breakdown signals, the upcoming weeks could play a crucial role in determining the short-term trajectory of Dogecoin.