Dogecoin (CRYPTO:DOGE) is showing signs of a potential technical breakout as analysts observe price action forming a falling wedge pattern on the weekly chart.
Market attention has returned to Dogecoin after a prolonged period of sideways movement and declining volatility across the broader crypto market.
A falling wedge is a technical structure where price trades between two downward-sloping trendlines that gradually converge over time.
This pattern often signals compression in price action, suggesting that momentum is building beneath the surface despite muted trading activity.
Analysts note that falling wedges can act as either continuation or reversal patterns depending on the prior trend direction.
In Dogecoin’s case, the wedge follows a broader bullish cycle that began after previous market recoveries.
The upper boundary of the wedge typically acts as resistance, while the lower boundary serves as a support zone that limits downside movement.
A decisive break above resistance is often interpreted as confirmation of renewed bullish momentum.