Dogecoin’s price is confined within a symmetrical triangle and is approaching the critical expansion point of $0.163.
Network activity shows a decline in daily active addresses and steady but decreasing whale transactions, indicating reduced engagement.
Market sentiment is bearish in the short term and technical indicators suggest that consolidation will continue unless a breakout occurs.
Dogecoin (DOGE) price action has been confined within a symmetrical triangle pattern for the past three weeks. As the cryptocurrency approaches an important expansion point, currently around $0.163, market watchers are closely watching for a potential breakout.
If Dogecoin breaks through this critical resistance level, the price will most likely move significantly higher. Dogecoin is currently trading at $0.16, up a small 0.37% in the past 24 hours and 2.56% in the past week.
The Stochastic RSI is currently in a neutral position, suggesting a balanced market with no strong directional bias. Likewise, the MACD indicator shows that the lines are close together, which suggests that sideways movement is likely before a trend is established.
Network activity also reflects this consolidation. Data shows that the number of daily active addresses has declined, from about 65,000 in early May to about 29,100 in early June. The decrease in activity indicates that small investors are less involved. In addition, while the number of whale transactions has remained stable, there is a downward trend, indicating that large holders have not been active during this period.
Market sentiment, as measured by the long-short ratio, suggests a bearish outlook in the short term, with bears exerting control as prices adjust. Both technical indicators and on-chain data suggest that the consolidation phase will continue unless a major breakout occurs.
Breakout otherwise the consolidation phase will continue.
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