Dogecoin Falling Wedge Nears Breakout – Will History Repeat?

Dogecoin (DOGE) may be on the verge of a crucial breakout as a familiar bullish pattern emerges on the charts. According to crypto analyst Trader Tardigrade, the DOGE token frequently forms large falling wedge patterns before experiencing sharp price surges. The analyst suggests a breakout could be imminent, signaling a likely rally for the popular meme coin.

Historically, Dogecoin cryptocurrency has exhibited strong rallies following the formation of falling wedge patterns, a trend highlighted in Trader Tardigrade’s latest analysis. At press time, the cryptocurrency consolidates within a descending wedge pattern, with resistance near $0.26 and support around $0.23.

If history repeats itself, a breakout from the current wedge could trigger a sharp price surge, validating the bullish scenario. Technical projections suggest an initial target of $0.40–$0.50, while a bullish continuation could push the DOGE token toward $0.95–$1.05.

Conversely, failure to break out of the falling wedge pattern may lead to extended consolidation or a retest of lower support. Despite the optimistic market outlook, the token’s trading volume will be a key factor in confirming the breakout. If buying pressure intensifies, Dogecoin could follow its historical pattern and surge again. With the setup aligning with previous breakouts, traders are closely watching to see whether DOGE is on the brink of another major rally.

Dogecoin Eyes Breakout as On-Chain Metrics Shift

According to Dogecoin’s funding rate trends, the Open Interest (OI)-Weighted Funding Rate has remained mostly positive, suggesting that long positions dominate the market. However, historical data reveals that speculative interest spiked between November and December 2024, coinciding with cryptocurrency’s short-term rally to $0.48.

Yet, a decline in funding rates throughout January signaled cooling bullish sentiment, with brief negative funding periods in late January and early February reflecting an increase in short positions. Currently, funding remains slightly positive at 0.0052%, indicating cautious optimism among traders.

If funding rates surge alongside price movement, it could reinforce market conviction and support a potential breakout above $0.26, which remains a key resistance level. Meanwhile, Dogecoin’s trading volume has declined notably after reaching its highest levels in mid-November, when the DOGE token surged to $0.48.

Volume saw a steady downturn from late December onward, mirroring the coin’s retreat to the $0.26–$0.30 range. Nonetheless, a short-lived spike in early February suggested a brief revival in buying interest, but the lack of sustained volume raises concerns about demand strength.

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