Dogecoin consolidates near $0.22, with analysts tracking a breakout chance from the symmetrical triangle formation.
Dogecoin price is trading at $0.22, and traders are closely watching a key technical pattern. Analysts suggest the meme coin could soon see a breakout as the symmetrical triangle formation nears completion. However, concerns about whale activity and declining network engagement remain.
Technical Chart Shows Dogecoin at a Crossroads
Trader Tardigrade noted that Dogecoin has completed all corrective waves within the triangle. “Wave E is complete, and the pattern is ready for a breakout,” he explained on X platform. He added that the impulsive Dogecoin uptrend could continue if the breakout happens on the upside.
Market analysts are tracking Dogecoin as it tests support at $0.218 within a symmetrical triangle pattern. This technical setup has been forming for months and is now approaching its final stage. A breakout from this structure could set the direction for the next major move.
Ali Charts also pointed out that Dogecoin needs to break above $0.23 to regain bullish momentum. He stated, “A break above $0.23 will send Dogecoin flying,” referring to the resistance level holding back upward movement. This has created anticipation among traders, who see $0.23 as the key price point to watch.
Whale Activity and Weakening On-Chain Metrics
While technical patterns suggest a potential breakout, on-chain metrics are showing weakness. A recent whale transaction of 900 million DOGE, valued at over $200 million, was sent to Binance. Large moves of this scale often create concerns about possible selling pressure in the market.
Data from Santiment shows that wallets holding between 10 million and 100 million DOGE have reduced holdings by 6% since late July. This reduction signals that major holders may be preparing for further downside risk. Such movements often add uncertainty for retail traders who follow whale activity closely.
At the same time, Dogecoin futures open interest dropped to $3.24 billion from $5.25 billion last month. This decline suggests lower participation in the derivatives market, which often reflects weaker sentiment. The falling open interest also reduces the chances of large price swings caused by leveraged trading.
Dogecoin Price and Retail Sentiment
Dogecoin price has already fallen 25% in the past month from highs of $0.28. Dogecoin is consolidating near its lower trendline support at $0.218. If this support breaks, analysts warn that the price could fall toward $0.12, representing a possible 45% drop.
Daily active addresses on the Dogecoin network have also declined, dropping to 58,000 from 674,500 in July. This fall shows a sharp decrease in retail participation, which had surged in late 2024. Lower network activity is often seen as a sign of fading interest from smaller investors.
Despite the challenges, some traders remain optimistic. An analyst dogegod posted that “ATH incoming,” suggesting confidence in a new all-time high. This sentiment reflects the divide in the market, with some seeing weakness while others expect a rebound.
