Dogecoin experienced a slight increase, reaching $0.17 on Friday, representing a 1.0% rise over the past 24 hours. However, trading activity has decreased this week, resulting in a nearly 3% decline over the last seven days. Recent reports indicate that investors are exercising caution as trading volume has fallen by 30%, bringing it down to approximately $678 million.
On-chain data reveals that the decline in daily trading volume suggests a reduction in trader participation. The 34% drop in activity points to a loss of momentum in the market. Analysts warn that low trading volumes can lead to significant price fluctuations, as even small buy or sell orders can disproportionately affect prices when fewer coins are being exchanged.
According to market analyst Ali, Dogecoin appears poised for a significant price movement, potentially around 60%. He advises that a daily closing price outside the $0.16 to $0.22 range could determine the future trend direction. For those interested, Ali encourages signing up on the exchange CoinEx using his referral link to engage in this trading opportunity.
Chart analysis from early 2024 to mid-2025 indicates that Dogecoin is forming a symmetrical triangle pattern, characterized by a series of lower highs and higher lows as the trendlines converge. Ali highlights that this narrowing range often precedes a significant price movement, with the apex of the triangle expected by June 2025, which could lead to increased volatility.
Ali's analysis suggests that a daily close above $0.22 may indicate a bullish breakout for Dogecoin, with potential price targets around $0.35 to $0.36, approximately 60% higher than current levels. Conversely, should the price fall below $0.16, it could trigger a sell-off towards $0.10. Investors are closely monitoring these levels to decide whether to add to their positions or limit losses.
Digital Coin Price remains optimistic, projecting that Dogecoin could surpass $0.37 by the end of the year and possibly revisit its previous high of $0.74. Market dynamics, including movements in Bitcoin and Ethereum, can significantly influence Dogecoin's price. A rise in these major cryptocurrencies could propel DOGE higher, while a broad market downturn would likely exacerbate losses.
Traders are advised to remain patient, looking for increased trading volume to validate any movements beyond $0.22 or below $0.16. Until then, market participants should anticipate a period of fluctuating prices. The upcoming weeks will be crucial as the symmetrical triangle pattern tightens, and a resurgence in trading volume could lead to a decisive trend—either a robust rally or a deeper correction.
