- DOGE coils near $0.16 as wedge pressure builds after months of lower highs.
- RSI divergence forms against price, hinting at a potential breakout setup.
- Tight 4H triangle compresses DOGE between $0.135 and $0.17 before April 18.
Dogecoin (DOGE) is trading inside a multi-month descending wedge while simultaneously forming a short-term triangle squeeze. Analysts are closely tracking momentum shifts and chart compression for signs of a breakout in either direction.
Multi-Month Wedge Shows Structural Compression
On the daily timespan, Dogecoin has formed a descending wedge since November 2023, marked by lower highs and lows. The structure now compresses into a narrowing range near $0.16. This shift prompted market analyst Javon Marks to examine the wedge and its momentum signals. Reviewing the pattern, he reports DOGE has remained below resistance since the December peak while support holds firm through repeated downside tests.
Source: Javon Marks
Seeing how momentum shifted, he narrows in on RSI behavior across recent months. The RSI has formed three clear higher lows since January 2024, while the price has printed lower lows. This bullish divergence aligns with historical breakout conditions across similar falling wedge setups.
Noting the price squeeze, he highlights the tightening gap between price and wedge boundaries. The current position near $0.16 lies just beneath long-term resistance, indicating growing pressure. DOGE price has neared the wedge apex, typically a signal for imminent volatility.
Interpreting the recent candlestick formation, he explains that lower tails suggest buying interest near support. Volume remains muted but occasionally shows upside spikes, hinting at underlying accumulation. No breakout has occurred yet, but the distance between levels continues to shrink.
Short-Term Triangle Builds Compressed Range
Trader Tardigrade analyzed Dogecoin’s 4-hour chart, highlighting a symmetrical triangle forming since early April. Price compresses between $0.135 and $0.17, held by rising lows and capped by a descending trendline. This setup reflects tightening volatility and signals a pending move.
Source: Trader Tardigrade
He outlined a short-term breakout scenario focused on the triangle’s apex. With resistance closing in, Trader Tardigrade notes low-body Heikin Ashi candles clustering near the top. These alternating colors reflect indecision as price coils within narrowing boundaries.
After price tapped support, Tardigrade cited the April 3, 8, and 17 bounces to confirm trendline strength. Repeated rejections at resistance reinforced the triangle’s symmetry, keeping price locked in a contracting range. Each retest sharpened the structure as breakout pressure builds. The triangle now approaches completion, with volatility expansion expected once direction resolves.
Studying volume inflows, he identifies declining participation, a pattern consistent with late-stage consolidation phases. The structure nears completion as April 18 approaches, aligning with historical setups that precede volatility expansion. The triangle remains intact, and breakout conditions appear to be maturing rapidly.
