Dogecoin News Today: Dogecoin Tests 0.618 Fibonacci Support as $0.23 Rebound Looms Critical

Dogecoin is currently testing a key technical support zone near the 0.618 Fibonacci retracement level following a sharp pullback from a recent swing high of $0.28 [1]. This retracement has brought the price back to a critical juncture that could determine whether the ongoing bullish trend resumes or gives way to a deeper correction. The 0.618 Fibonacci zone is widely recognized among traders as a high-probability level where price often finds support during impulsive trends, particularly after extended moves higher.

Analysts emphasize that reclaiming the $0.23 resistance level is essential for confirming bullish strength and setting the stage for another attempt at breaking through the $0.28 high [1]. A successful retest of $0.23 with strong volume and intact structure could indicate the formation of a double-bottom or accumulation pattern—both of which are typically seen as signs of renewed buyer interest. However, a breakdown below the 0.618 Fibonacci level would invalidate the bullish case and increase the risk of a further decline toward the $0.15 support zone [1]. This scenario could signal a broader shift in market sentiment and potentially extend the correction into a wider trading range.

Early signs of demand have already emerged at the 0.618 level, with an initial bounce observed shortly after the first touch. Nonetheless, traders caution that a single rebound is not enough for confirmation. A structured base, whether through a double-bottom or consolidation phase, is needed to affirm the strength of the buyers and suggest a higher probability of a trend continuation [1]. If such a base forms and price remains above the key Fibonacci level, it could set the foundation for a more sustained move toward $0.23 and, eventually, $0.28.

The next few days are considered critical for Dogecoin’s short-term trajectory. A strong hold above the 0.618 Fibonacci zone would be interpreted as a positive signal for the continuation of the bullish trend, while a breakdown would likely shift market expectations toward a more prolonged corrective phase. Traders and investors are advised to closely monitor price action and volume during this period for signs of accumulation or distribution, which could provide additional insight into the likely direction of the asset [1].

Source: [1] Dogecoin price at key support zone with $0.23 reclaim in focus (https://crypto.news/dogecoin-price-at-key-support-zone-with-0-23-reclaim-in-focus/)