Dogecoin forms a descending triangle with stable support at $0.215, indicating a possible breakout.

A confirmed breakout above $0.228 could trigger a rally toward $0.306 — a 38% gain.

Whale wallets added over 1 billion DOGE recently, now holding 25.97 billion tokens in total.

Dogecoin (DOGE) may be on the verge of a significant price move, according to chart analysis shared by market analyst CW. On May 18, CW posted a 4-hour chart of DOGE/USDT showing a descending triangle formation, often considered a precursor to a breakout.

The triangle pattern is forming with a series of lower highs and steady support around the $0.215 level. This structure signals a squeeze in price action, which typically results in a sharp move once a breakout occurs. CW chart shows that the price is nearing the apex of the triangle, suggesting a decisive breakout could happen soon.

DOGE’s short-term convergence breakout is imminent,” CW said.

According to CW, a break above the triangle’s resistance line could push DOGE up toward $0.306. This target is based on the height of the triangle, measured from the widest point of the pattern and added to the breakout level.

“If the convergence breakout is achieved, further rise to the $0.306 level is possible,” CW noted. The move would mark a 38% gain from the current trading range.

Bullish Momentum Builds for Dogecoin

At the moment, Dogecoin trades at $0.223. It has risen 2.96% over the past 24 hours and now stands above its 200 EMA, currently set near $0.216. That moving average serves as a critical support level and gives bulls confidence in holding their positions.

A clear push above $0.228 is seen as a confirmation level. If that happens, DOGE may then aim for the next resistance zone around $0.265, with $0.3 becoming a strong psychological and technical target after that.

Volume has remained steady, and recent candles on the chart reflect growing buyer interest. If that buying pressure continues and is paired with a surge in volume, the price could break higher faster than expected. No signs of weakness have appeared yet.

Supporting the positive outlook, the Relative Strength Index (RSI) now reads 60.21. That places Dogecoin firmly in bullish territory but not at the point of being overbought. A reading above 50 suggests strength, and being under 70 shows that there’s still room for more gains. There’s no indication yet of a reversal on the horizon.

Whale Activity Signals Rising Confidence

Beyond the charts, on-chain data backs the growing optimism. Over the past month, major Dogecoin holders—commonly referred to as whales—have accumulated over 1 billion DOGE. These large wallets now control around 25.97 billion tokens. This increase in holdings is often seen as a sign of confidence, with accumulation hinting at expectations for a price rise.

Clear support levels are in place if the price sees a decline. The $0.216 level, which matches the 200 EMA, is the first safety net. If the price slips below that, there is added support at $0.205, matching the 100 EMA. A deeper decline that holds below $0.202 could erase the bullish setup and push the coin into another phase of sideways movement or even losses.

All signals, however, point upward at the moment. The $0.228 resistance is the line to watch. A confirmed move past that could ignite a rally toward the long-watched $0.3 mark, a level Dogecoin hasn’t reached in months. With momentum building and whales positioning, the coin appears set for a possible breakout.

Read More | PEPE Whale Buys $22 Million Worth of Tokens during memecoin market price drop

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Filed under: Bitcoin - @ May 18, 2025 5:00 pm