Dogecoin Price May Surge If It Reclaims This Key Fibonacci Level

The Dogecoin price is currently navigating within a narrow range as analysts assess its upcoming potential movements. Recent technical analyses have spotlighted specific price levels that may significantly affect future trends. Experts suggest that a shift in the overall crypto market dynamics, along with reclaiming an important Fibonacci level, could pave the way for a dramatic upward movement for DOGE.

Key Takeaways

Dogecoin's price is currently trading within a tight range, facing downward pressure due to market volatility.
Analysts suggest the $0.138 price level is crucial for potential recovery and upside momentum.
Reclaiming this level may indicate a shift back to bullish market conditions.
The 200-week Simple Moving Average may act as a significant support level for future price movements.
A correlation exists between Dogecoin's potential rally and Bitcoin's performance, particularly if Bitcoin reclaims key price levels.

Dogecoin

Key Resistance Level: Dogecoin at $0.138

For several months, Dogecoin has been experiencing a downward trend, facing pressure from ongoing volatility and a general slowdown in the market. Although DOGE's current price remains below $0.13 following a steady decline, crypto market analyst Kevin has highlighted scenarios where the meme coin could recover, potentially leading to a robust upswing soon.

In an X post on Tuesday, Kevin identified the $0.138 mark as a crucial level that needs to be reclaimed with strong closes on higher time frames, specifically over three days to a week. He believes that achieving this would represent a significant shift in Dogecoin’s momentum and signal renewed strength following an extended consolidation period. Furthermore, this recovery could lead to a significant price surge for the popular coin.

Kevin elaborated that reclaiming the $0.138 level would bring Dogecoin back above the key macro Fibonacci retracement at around 0.382. Historically, this Fibonacci level has served as a vital dividing line between bearish and bullish market phases. Thus, moving above it could indicate that long-term investors are regaining control over the market.

Dogecoin price
Source: X

The analyst also underscored the importance of the 200-week Simple Moving Average (SMA) in the analysis. This metric often works as a significant support or resistance level during major trend reversals. A strong move above this critical level would support Kevin’s bullish outlook, suggesting that Dogecoin may be nearing the end of its correction phase and gearing up for a stronger market phase.

Once this structural shift occurs, Kevin’s analysis indicates that the next major liquidity and resistance area would be around $0.46.

Dogecoin's Rally Linked to Bitcoin’s Performance

In the chart accompanying his analysis, Kevin demonstrates that Dogecoin is currently trading sideways within what seems to be a Dollar-Cost Averaging (DCA) zone. This range indicates prolonged consolidation, where the price has not made a decisive move in either direction.

The chart setup suggests that any significant price breakout for Dogecoin will likely align with renewed strength in Bitcoin. Kevin mentions that if Bitcoin can reclaim the $88,000 to $91,000 range, it could drive bullish momentum throughout the crypto market, potentially resulting in a price rally for Dogecoin.

To reach this range, Bitcoin would need to increase by about 2-6% from its current price. Without this confirmation, the analyst believes that DOGE may continue to consolidate within its present narrow range.

Dogecoin price chart from Tradingview.com
DOGE price continues to trend low | Source: DOGEUSDT on Tradingview.com