Dogecoin Faces Critical Fibonacci Levels as Sell-Off Looms
1min read Dogecoin, a cryptocurrency known for its volatile price movements, is currently at a critical juncture. Analysts are closely monitoring key Fibonacci retracement levels to determine the next major move for DOGE. The 0.702 and 0.786 Fibonacci levels are particularly important, as they have historically served as key resistance and breakout points.
If Dogecoin fails to surpass these levels, analysts warn of a potential sell-off. Charting Guy, a prominent crypto analyst, has stated that he may sell most, if not all, of his DOGE holdings if the cryptocurrency struggles to break through these Fibonacci levels. This cautionary note is based on DOGE’s cyclical price behavior, which has often seen steep retracements following rallies.
Historical trends support this view, as past Dogecoin rallies were often followed by significant corrections. If the resistance at these Fibonacci levels remains too strong, DOGE could drop to lower support levels, such as the 0.382 Fibonacci retracement, or even revisit previous cycle lows near $0.049. This potential downturn is further supported by technical indicators, which suggest weak momentum and reduced buying pressure.
The Relative Strength Index (RSI) on the daily chart remains below 40, signaling oversold conditions that could trigger a short-term bounce. However, a sustained uptrend would require a decisive move above 50. The On-Balance Volume (OBV) has been steadily declining, indicating reduced buying pressure despite occasional price spikes. This suggests that the current rally may not be sustainable without strong social sentiment and whale activity.
With a potential major top approaching in late April or early May, traders should closely watch DOGE’s behavior at these key Fibonacci levels. If DOGE fails to surpass these levels, the analyst’s prediction might come true: selling could be the wisest choice before the next cycle reset. This cautionary note is echoed by other analysts, who also predict a significant sell-off if DOGE fails to maintain its support levels.
Ali Martinez, another analyst, predicts that if Dogecoin breaks below the critical support level of $0.19, it could plummet to as low as $0.015. This analysis is based on Dogecoin's trading pattern within an ascending channel, which has 