Dogecoin Prepares for a 60% Rise as Future Trading Signals Warn

Dogecoin displays impending price action patterns, as it remains in the form of a symmetrical triangle on the daily timeframe. Such a technical pattern is characterized by the convergence of trend lines, signifies a narrowing of price action, and indicates that a potential volatility burst will occur when an asset breaks out of the range. The most important points to observe are 0.16 and 0.22, and according to analysts, the proximity of a value outside of this range could provide the next important direction.

Traders often refer to the symmetrical triangle structure as a phase of indecision in the market. However, as the price approaches the peak of such a trend, the likelihood of a breakout increases. With the condition that DOGE breaks out, it could reach the previous high of around $0.35. On the other hand, a breakout at the lower level of $0.16 could provide a way to lower support at $0.10. The target at a potential move of 60 percent can be estimated based on the height of the triangle, according to the breakout point. The trend of the funding ratio reflects a mixed sentiment. A separate chart analyzing DOGE's (OI) open rate-weighted funding rate highlights mixed market sentiment among futures traders. Most of the recent funding phases have shown positive values, indicating that long positions dominate. However, the continuous declines into the negative zone, especially in February, March and June, indicate short-term bearish pressure or the possibility of excessive leverage on the part of buyers.

The DOGE price has been steadily declining from around $0.42 in January to below $0.15 in June. Short-term recovery efforts in late April and mid-May coincided with spikes in funding rates and open interest rates, alluding to speculative activity during those periods. However, the ongoing lack of active funding and declining futures trading volumes signal that optimistic sentiment is yet to return to full strength. The trading volume of futures and open interest has decreased. During the observation period, both futures trading volume and open interest showed a downward trend. This decline in activity suggests fewer traders are participating in DOGE derivative products, which may reflect a broader pause in speculative interest. Lower volumes also mean reduced liquidity, which could amplify the impact of any breakout moves. As DOGE approaches the top of the triangle pattern, a decisive price movement could draw new attention to its futures market. Traders are closely watching this setup, waiting for a breakout confirmation.