Dogecoin Price May Surge If It Recovers This Fibonacci Level

The price of Dogecoin (DOGE) is currently trading within a narrow range as analysts assess its potential next move. Recent technical analysis highlights specific price levels that could shape future movements. Experts suggest that a shift in the broader cryptocurrency market's momentum, coupled with a crucial Fibonacci level recovery, may pave the way for a significant upside for DOGE.

Key Takeaways:

Dogecoin is currently trading in a narrow range, facing downward pressure.
Analyst Kevin identifies $0.138 as a key level for recovery, which could indicate renewed bullish momentum for DOGE.
Surpassing the 0.382 Fibonacci retracement level may suggest long-term buyers are returning.
The 200-week Simple Moving Average is crucial for gauging potential trend changes.
A rally in Dogecoin may depend on Bitcoin reclaiming a price range between $88,000 and $91,000.

Dogecoin

Key Testing Point for Dogecoin at $0.138

Dogecoin has experienced a downward trend over the last several months, facing pressure amidst ongoing market volatility and a general downturn. Currently, DOGE's price remains below $0.13 after experiencing a consistent decline in recent months. However, crypto market analyst Kevin has identified certain conditions that could lead to a recovery and a strong upside for the meme coin soon.

In a post on X, Kevin highlighted the $0.138 mark as a crucial area that needs to be reclaimed with strong closes over a three-day to one-week timeframe. He believes that achieving this level would signify a significant shift in Dogecoin's momentum and indicate renewed strength after a prolonged period of consolidation. He elaborated that such a recovery would create opportunities for a potentially substantial price rally for the meme coin.

Kevin further explained that reclaiming the $0.138 level would lift Dogecoin back above an essential macro Fibonacci retracement level at approximately 0.382. Historically, this Fibonacci area has served as a critical dividing line between bearish and bullish market phases, suggesting that surpassing it could indicate that long-term buyers are regaining control.

Dogecoin price
Source: X

Additionally, Kevin pointed out the importance of the 200-week Simple Moving Average (SMA) on the chart, highlighting that it often acts as a vital support or resistance level during major trend shifts. A decisive movement above this significant level would support the analyst’s bullish outlook, signaling that Dogecoin may soon transition out of its correction phase and into a stronger market period.

Importantly, once this structural change happens, Kevin's analysis indicates that the next major liquidity and resistance zone could be around $0.46.

Dogecoin Price Rally Linked to Bitcoin’s Performance

In his accompanying chart, Kevin illustrates that Dogecoin is currently trading sideways within what appears to be a Dollar-Cost Averaging (DCA) zone. This range indicates prolonged consolidation, where the price hasn't shown a strong directional move.

The chart setup implies that any notable breakout in Dogecoin's price could likely align with a resurgence in Bitcoin's strength. Kevin notes that if Bitcoin can reclaim the $88,000 to $91,000 region, it could boost bullish momentum across the entire cryptocurrency market and subsequently stimulate a price rally for Dogecoin.

For Bitcoin to reach this range, it would need to rally by about 2-6% from its current price level. Without such confirmation, the analyst suggests that DOGE may continue to consolidate within its existing narrow range.

Dogecoin price chart from Tradingview.com
DOGE price remains low | Source: DOGEUSDT on Tradingview.com