Dogecoin, the popular meme coin, is currently experiencing a lull in network activity, with on-chain data indicating a decline in interest. Whale transactions have dropped to a mere 66 per day, while active addresses have fallen below 60,000—levels not seen since October 2024.
Technical analysts, however, are optimistic as they observe the formation of Dogecoin’s fourth falling wedge pattern. This pattern has historically preceded significant price surges, with past breakouts resulting in gains of 88%, 208%, and even 445%. With this pattern in play, traders are hopeful for a potential breakout and a new rally for Dogecoin.
In terms of key price levels to watch, support is currently around $0.06, with resistance levels at $0.08 and $0.12. A breakout above the wedge could lead to a sharp rally, while a drop below $0.055 may signal further downside for the meme coin.
Despite the decrease in on-chain engagement suggesting waning retail investor interest, experienced traders are keeping a close eye on Dogecoin’s technical patterns. One trader, in particular, has already profited from swing trading DOGE, buying low and selling high. With anticipation of another all-time high push, bullish sentiment remains strong among market participants.
While Dogecoin’s network activity may be sluggish at the moment, traders are focused on the potential for a historic rally repeat. If the fourth falling wedge pattern follows past trends, Dogecoin could soon enter a phase of price discovery and potentially see significant gains.
It’s important to note that the information presented in this article is for informational purposes only and should not be considered financial advice. Readers are advised to exercise caution and conduct their own research before making any investment decisions related to Dogecoin or any other cryptocurrency.