DOGE has entered a key consolidation area, potentially building momentum for a rebound.
At Wednesday's close, as market sentiment turned cautious, the price of Dogecoin (DOGE) fell back to $0.22 and entered a narrow consolidation range between $0.21 and $0.25. Although momentum appears to weaken at first glance, several analysts pointed out that this horizontal trend may be a buildup phase before a significant market explosion.
Well-known trader Tardigrade analyzed on platform X that DOGE is currently constructing a consolidation range near a key resistance area, which is typically a strong signal before an asset is about to break out.
Technical indicators are releasing breakout signals, and the RSI structure is similar to that before the significant rise in 2023.
From the daily chart, DOGE's RSI moving average (Relative Strength Index) has turned and is preparing to rise again. Tardigrade noted that this structure is similar to that before the significant rise in November 2023, suggesting a potential rapid increase in the short term.
If DOGE successfully breaks through the key resistance level of $0.25, the next target may be aimed directly at the $0.4 range.
On-chain data is synchronously strengthening, and the number of active wallets has soared to 127,000.
On-chain signals are also synchronously releasing positive signals. Crypto analyst Ali Martinez pointed out that the activity level of the DOGE network has significantly increased recently, with the number of active wallet addresses rising to 127,570, indicating a sustained warming of investor interest and network participation.
The increase in active addresses is typically associated with new capital inflows into the market, which may signal a return of retail investors and institutional capital, providing momentum for future price increases.
Conclusion: Consolidation is not weakness; it may be the 'eve' of a breakout.
The resonance of technical patterns, RSI signals, and on-chain participation makes DOGE's current trend resemble the calm before the storm. If it can break through the current consolidation range, bulls are expected to regain control, with $0.4 being the next important target.
Stay tuned, once the volume breaks through, DOGE may repeat last year's astonishing rebound.
