Dogecoin declined more than 2% over the last 24 hours Thursday, but a prominent cryptocurrency analyst identified a technical pattern suggesting the memecoin could rally 26%. The price retreat came amid broader market weakness that also affected Bitcoin and Ethereum. At the same time, network activity spike might be a hint to a more optimistic development.
What Happened: Memecoin Declines Amid Volume Drop
The world's largest memecoin by market capitalization gave up gains from the previous session as trading volume plunged 23%, signaling reduced trader interest. Speculative interest also waned, with Dogecoin futures open interest falling 3.53% over the past 24 hours. The decline mirrored a broader market correction that saw Bitcoin drop 1.37% and Ethereum fall 1.16% during the same period.
ChiefraT, a cryptocurrency trader with a substantial following on X, spotted an upside breakout from a falling wedge pattern on Dogecoin's daily chart.
"Watching for a potential retest in the 0.14500 area. If we see a positive reaction here, this could start a 26% move IMO," the analyst wrote.
That projection would push DOGE to approximately $0.1857 from its current level.
Also Read: Current Bitcoin Cycle Sees $732 Billion in Inflows, More than Historical Total, Report Shows
Why It Matters: Network Activity Signals
Ali Martinez, another widely followed cryptocurrency analyst, identified a sharp spike in Dogecoin's daily active addresses on Dec. 3, marking the highest level since September.
The surge in network activity indicates renewed user engagement with the blockchain.
Derivative market data from Binance showed more than 75% of whale traders—defined as the top 20% of users by margin balance—were positioned for a DOGE rally, according to Long/Short Ratio metrics. The Bull Bear Power indicator registered a "Neutral" reading for the memecoin, while the Moving Average Convergence Divergence indicator flashed a "Buy" signal.
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