Dogecoin price is approaching the breakout of the upper triangle, could it return to its February high?

Dogecoin price is close to confirming the breakout of the ascending symmetric triangle pattern amid rising demand in the derivatives market.

Dogecoin (DOGE) rose 17% to a one-week high of $0.103 on Thursday morning Asian time, before settling at $0.096 at press time.

Dogecoin’s rally was supported by investor fears after reports emerged that Iran had secretly negotiated a deal with the US to ease the ongoing conflict between the two countries.

A look at its futures market shows that most investors are now betting in favor of a Dogecoin rally.

According to CoinGlass, the weighted funding ratio for Dogecoin has turned positive, indicating that long traders are paying short traders to hold their positions as they await further gains. Such conditions usually have a positive effect on retail sentiment.

On the daily chart, the Dogecoin price is close to confirming a breakout from the upper side of a symmetrical triangle pattern. When an asset breaks out of the upper side of a symmetrical triangle, it is considered a very positive signal and usually indicates the start of a sustained uptrend.

For Dogecoin, a breakout from the pattern could aggressively push the bulls to retrace their February high of around $0.117.

Momentum indicators like MACD and RSI seem to support the bullish path. The MACD lines were moving higher, while the RSI was close to breaking out of neutral, which is often the spark needed for a massive rally during periods of high market volatility.

However, it should be noted that a break from the $0.080 support will cancel the bullish setup.

Meanwhile, a major headwind for Dogecoin is weak demand for spot ETFs tied to the meme coin, which could limit any sustained rally.

Notably, the three DOGE ETFs have so far managed to generate a total of $7.45 million in net inflows since the start of November. These institutional products went a month with no flow to attract a total of $779,000 in inflows as of March 2.

Traders may see the slow attraction of mainstream investors as a sign that institutional players are unsure about the meme coin’s long-term prospects, even if retail demand remains strong.