Dogecoin Consolidates at Support, Prepares for Potential Breakout Soon

Dogecoin ($DOGE) is currently experiencing a period of tight consolidation following a liquidity sweep. This development has captured the attention of traders and analysts.

According to recent technical analysis shared by BitGuru, the cryptocurrency’s price action indicates that a possible rebound could be on the horizon. The market structure often seen in such situations typically results in upward movement once buyers step in.

At press time, Dogecoin is priced at $0.1253, showing a 1.6% decrease in the past 24 hours. The current price level places Dogecoin in a tight range, indicating potential stability before any significant price movements.

Dogecoin Consolidates as Market Waits for Potential Rebound

In its recent price movements, Dogecoin has followed a pattern that suggests a future surge. The consolidation phase comes after a period of rising prices, which included a significant rally earlier in the year.

This rally followed the formation of a “bullish cup” structure, which is often interpreted as a sign of accumulation and potential growth. However, after the rally, the market entered a consolidation phase where prices remained relatively flat.

This pattern is common in financial markets and signals a temporary pause before a more significant move. If buying pressure increases and volume picks up, the consolidation phase could give way to a sharp upward price movement.