Dogecoin’s price eyes breakout: Is $0.163 the key?

• Dogecoin price is trapped within a symmetrical triangle at it eyes a breakout at $0.163.
• On-chain metrics unveil reduced activity and stable whale transactions.

 Dogecoin [DOGE] price has been consolidating in a symmetrical triangle for the past three weeks since breaking out of the ascending triangle on 16th May.

The price is nearing a point of expansion at $0.163 level. If the price breakout above the resistance zone, a price surge is likely.

However, if the price do not build enough momentum to breakout, the consolidation may continue in the short run.

Dogecoin is currently trading at $0.16 on  CoinMarketCap, up 0.37% in the last 24 hours and up 2.56% in the last 7 days.

Key levels to watch

Dogecoin’s price is ranging in the symmetrical triangle formation. The price is nearing a critical expansion point around the $0.163 level.

If Dogecoin breaks above this level there could be a likely price spike. The Stochastic RSI is at a neutral level, suggesting neither overbought nor oversold conditions.

The MACD indicator shows the lines close together, indicating potential sideways movement before a clear trend direction is established.

This consolidation pattern suggests that Dogecoin may continue trading sideways in the short run.

Source: Tradingview

Insights into Dogecoin’s network activity

AMBCrypto analyzed Santiment’s data to affirm the technical insights. Dogecoin’s price volatility has been decreasing, indicating that the price is in consolidation phase.

The number of daily active addresses indicates a slight decline, suggesting reduced network activity from roughly 65,000 in early May to around 29,100 in early June. 

The whale transaction count (>100k USD) remains relatively stable but shows a downward trend, indicating that large holders are not actively trading. This stable but declining activity aligns with the consolidation pattern.

Source: Santiment

What next

The market sentiment, as measured by the long/short ratio is negative showing that bears are in control in the short run as price corrects the gaps.

Technical indicators suggest that a consolidation phase is likely, while on-chain data shows stable but reduced activity.

Is your portfolio green? Check out the Dogecoin Profit Calculator

Investors should keep a close eye on the $0.163 level for any potential breakouts. If the resistance is broken, a price increase is expected.

However, consolidation may continue in the immediate run. 

Source: Coinglass