Dogecoin eyes $2 breakout from multi-year triangle pattern

Dogecoin’s (CRYPTO:DOGE) price action is signaling a potential bullish breakout as it approaches the apex of a multi-year descending triangle pattern.

Recent technical analysis suggests that the meme coin, currently trading at $0.1659, could rally significantly if it breaks above key resistance levels.

The descending triangle pattern, which has been in formation since 2023, consists of a flat support level and a downward-sloping resistance line.

Historically, such patterns indicate decreasing selling pressure and consistent buyer interest, often leading to bullish reversals when the resistance line is breached.

Analysts have highlighted that Dogecoin’s price appears to be bouncing off the lower trendline of this triangle, suggesting an imminent upward move.

A breakout above $0.198 resistance could trigger a 10% rally to $0.220, according to TradingView data.

Beyond this, Dogecoin has the potential to surpass its 2021 all-time high of $0.73 and reach $1 by mid-2025.

Analysts also predict that if momentum continues, DOGE could climb further to $2 in the long term.

However, the bullish scenario depends on Dogecoin maintaining critical support levels above $0.15 and pushing past $0.2 within the month.

A failure to hold these levels could destabilise bullish momentum and lead to further declines.

The recent slowdown in Dogecoin’s downtrend has been accompanied by indecision candles, signaling reduced selling pressure and potential reversal.

Additionally, the price has moved above the Ichimoku Cloud indicator, which often confirms shifts out of bearish phases.

While optimism surrounds Dogecoin’s breakout potential, analysts caution that short-term volatility remains a risk.

Historical data shows that previous triangle breakouts have led to substantial gains but were followed by pullbacks to retest support zones.

At the time of reporting, the Dogecoin (DOGE) price was $0.162.