Dogecoin at Critical Level, Risk of Drop Below $0.049
The Most Important Points at a Glance
Dogecoin (DOGE) is at a crucial stage. A crypto analyst warns that failing to break through key Fibonacci retracement levels could lead to a significant price decline. In particular, the 0.702 and 0.786 Fibonacci levels are considered critical resistance points. If DOGE fails to surpass these levels, a selling wave could follow.
Why Are Fibonacci Levels Important?
Fibonacci retracement levels are technical indicators that analyze price movements and identify potential support or resistance zones. In the past, the 0.702 and 0.786 levels have often served as turning points for Dogecoin. A breakout above these levels could trigger a new upward trend. However, if DOGE fails to break through, a decline to lower support zones may follow.
What Happens If DOGE Fails to Overcome Resistance?
According to analyst “Charting Guy,” failing to break through the mentioned Fibonacci levels could lead to a sell-off. He is considering reducing his DOGE holdings if the price does not rise sustainably. Historical patterns show that Dogecoin often experiences significant pullbacks after strong rallies. If this pattern repeats, prices of $0.049 or lower could be possible.
Technical Indicators Suggest a Possible Correction
Technical indicators provide mixed signals. The Relative Strength Index (RSI) is below 40, indicating weak buying pressure. At the same time, the On-Balance Volume (OBV) shows declining buying activity. These factors suggest that DOGE is not currently in a strong upward trend. If market conditions do not improve, a decline could become more likely.
Our Assessment
Dogecoin is at a critical juncture. Traders should closely monitor the 0.702 and 0.786 Fibonacci levels. A breakout could trigger a rally, while failure might lead to a correction. Technical indicators currently show weak buying pressure, which could be a warning sign for short-term investors. Those invested in DOGE should closely follow price developments and watch for potential sell signals.
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $0.16 |
| 24h % | 2.30 % |
| 7d % | -17.96 % |
| 30d % | -34.78 % |
| 60d % | -50.93 % |
| 1y % | -6.94 % |
| Market Cap | $24,087,869,135.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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