Dogecoin (DOGE) is at present undergoing a negative phase and is showing signs of weakness in its market value. During the last 24 hours, the coin has depreciated by close to 1.14%, and in the last week, it has dropped by 2.7%.

Currently, the token is trading at $0.1368, with a 24-hour volume of $628.26 million, which is down by 26.47%, with a market capitalization of $23.03 billion, down by 1.15%, indicating low market confidence.

Source: CoinMarketCap

DOGE Enters Accumulation With Breakout in Focus

However, the crypto analyst, BitGuru, pointed out that a complete bullish cycle is observed in DOGE, ranging from the expansion phase in August and September to the distribution phase, with a visible market structure break. A managed correction led to a liquidity sweep, flushing out the weak longs. The price entered a phase of consolidation at $0.13.

During the period from October to December, DOGE was in a descending consolidation trend, forming identical lows before sweeping away sell-side market liquidity. This was a typical accumulation phase. The price has since respected the support area between $0.127 and $0.131, printing higher lows. A break below this area would negate the bullish market structure.

Source: @bitgu_ru

Now that structure is being stabilized, there is greater encouragement to continue in an optimistic fashion. A break above $0.146-$0.150 will confirm the momentum to reach $0.188-$0.200, then $0.215. Further strength will target $0.254, $0.284, and possibly $0.306, if market conditions allow.

DOGE Technical Indicators Signal Consolidation

Technically, the RSI is now at 47.98, below the moving average of 54.19. Since the last attempt to stay above the level of 60 failed, the bulls’ momentum has dampened. The RSI is above the oversold region, showing that the market is consolidating rather than experiencing heavy selling.

Source: TradingView

From the MACD, it is visible that the MACD line is at 0.00097, the signal line is at 0.00139, and the histogram is at -0.00041. The bear crossover indicates that there is short-term downward pressure. However, the fact that the histogram is shallow suggests that there is not much force being generated, which is usually the case during the consolidation phase prior to momentum.

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