Dogecoin, the top meme cryptocurrency, has experienced a drop this week due to Bitcoin's correction after its halving. Over five days, Dogecoin went from a high of $0.164 to $0.146, marking an 11.17% loss. However, the current price is testing a crucial support level in a triangle pattern, hinting at a possible turnaround.

For about two months, Dogecoin's price has been moving sideways, forming a symmetrical triangle pattern on the daily chart. This pattern is marked by two converging trendlines, serving as dynamic support and resistance levels. Presently, Dogecoin is trading at $0.145, with signs of demand at the lower trendline, suggesting a potential rebound.

According to analysis from Santiment, there's a divergence in cryptocurrency wallet activity. While Bitcoin wallets show increasing activity, indicating growing interest despite price volatility, altcoin wallets like Dogecoin have plateaued after earlier increases. This shift may suggest traders seeking stability in less volatile coins during uncertain market conditions.

To establish a clear trend, Dogecoin needs to break out of the triangle pattern. A breakout above the upper trendline could accelerate buying momentum and push the price above $0.2. However, technical indicators like the Bollinger Bands and Moving Average Convergence Divergence suggest that sellers are still exerting pressure on Dogecoin.

In conclusion, Dogecoin's price movement is currently influenced by the formation of a triangle pattern, with potential for a breakout leading to either a bullish or bearish trend. Traders are closely watching key support and resistance levels to gauge the next direction of this meme cryptocurrency.