Dogecoin Consolidates at $0.1596 Awaiting 60% Rally

Dogecoin (DOGE) is currently in a phase of consolidation, repeating a pattern observed in previous bull cycles. This pattern, known as the blue box phase, is characterized by a period of sideways movement before a potential breakout. The current cycle mirrors those of 2016–2017 and 2020–2021, where DOGE experienced a sharp decline during the bear market, followed by a flat accumulation phase, and ultimately a bullish rally.

DOGE is now trading at approximately $0.1596, and analysts suggest that it may be entering the final stage of accumulation before an upward move. This phase is crucial as it sets the stage for the next bullish cycle. The color-coded charts, with red zones representing declines and blue zones signaling buildup periods, help identify key levels and provide insights into the potential direction of the price movement.

Technical indicators also support the bullish outlook for DOGE. A symmetrical triangle pattern on the 4-hour chart suggests a possible 60% rally if DOGE breaks above $0.172. The Relative Strength Index (RSI) is nearing 50, indicating a potential trend shift. Additionally, there has been a significant increase in transaction volume and active addresses, with a 41.12% rise in transaction volume and a 34.91% jump in daily active addresses. This on-chain growth supports the accumulation theory and suggests rising user engagement, further bolstering the case for a potential breakout.

According to an observation, DOGE’s price movement continues to repeat historical behavior, transitioning from a bear market into a flat accumulation phase and then developing into a bullish rally. The current movement within the blue box consolidation zone is similar to past cycles, where a stable consolidation phase preceded a breakout. This structured pattern was evident in the 2016–2017 and 2020–2021 cycles, and with DOGE now trading at $0.1596, analysts suggest that it may be entering the final stage of accumulation before an upward move.

The weekly RSI is near a bottom while DOGE approaches long-term uptrend support, further reinforcing the bullish sentiment. Analysts believe that bids between $0.14–$0.16 will pay handsomely over the next 6–12 months, reaffirming the pattern’s consistency. If the price holds above $0.16 and breaks $0.172, momentum could accelerate, potentially leading to a significant rally.