Dogecoin forms third major triangle pattern on monthly chart, traders compare setup to 2017 and 2020 cycles

Recurring pattern stands out on the chart

On the monthly timeframe, Dogecoin’s price appears to be tightening between converging support and resistance lines—an arrangement known in technical analysis as a triangle formation. Such patterns are often tracked as indicators of potential future price moves. However, experts caution that the mere appearance of this structure does not automatically signal the start of a new trend.

Traders note that, in both 2017 and 2020, Dogecoin’s chart showed triangle apexes converging at similar trendlines, followed by strong price surges. Despite these parallels, they emphasize there is no guarantee the same outcome will play out again, as current market dynamics may differ significantly from previous cycles.

Trader Tardigrade argues that the same triangle pattern has formed for a third time on Dogecoin’s monthly chart, with the pattern’s apex again approaching a familiar trendline.

The main reason this pattern is drawing attention is that the triangle’s upper point is once again nearing that key trend area. This development has prompted some market watchers to keep a closer eye on the possibility of a breakout to the upside. Still, most analysts agree that it is too early to call for a major move until further confirmation emerges.

Possible retest of 2022 lows ahead

Some analysts argue that Dogecoin may revisit its lows from 2022 before any sustained rebound occurs. They highlight this zone as a key support that could act as a foundation, with a potential pullback revealing whether buyers remain active at previous price levels.

Hailey LUNC XRP suggests that Dogecoin could retest its 2022 lows in the coming months, possibly entering a longer accumulation period afterwards.

If the price revisits these lower ranges, investors will monitor whether selling pressure is easing, whether trading volumes stay steady, and whether price swings are narrowing. Such signals could indicate that a bottom is taking shape. On the other hand, if buying interest remains weak near this support area, the short-term downside risk could climb further for Dogecoin holders.

Wider market conditions could shape the trend

Dogecoin often moves in line with overall risk appetite across the cryptocurrency market. Increased confidence in the wider market tends to boost interest in meme coins like Dogecoin, while a weakening backdrop can expose them to heavier pressure. For this reason, the evolution of Dogecoin’s current chart pattern may hinge not only on the technical picture, but also on the performance of Bitcoin and the broader crypto market.

Right now, investors are closely tracking the monthly triangle setup, the relevant trendline, and the 2022 low area. A convincing breakout would likely need to be supported by higher trading volume and continued buying interest. Until a clear technical confirmation arrives, market participants appear content to wait and observe further developments in Dogecoin’s price behavior.