Dogecoin appears poised to break out from a major Fibonacci retracement level on the weekly chart, which has historically served as resistance.
Crypto Surf, a prominent market analyst, brought the potential of the meme coin to public attention in a recent analysis. In particular, its support chart confirms that Dogecoin has repeatedly hit the resistance level during this Fibonacci retracement since the November 2024 rally.
Dogecoin Hits Fib. 0.618 Resistance
As a reminder, the market established this resistance during the 2021 rise. run but failed to cross it decisively before the bullish momentum subsided. at the time. Dogecoin initially pushed above Fibonacci resistance, which is located at Fib. 0.618 in May 2021, extending its run to an all-time high of $0.74 at the time.
However, when a pullback to retest the resistance level occurred a week later, the leading coin failed to defend the breakout and hold it as support, leading to a breakout below. This bearish turn of events caused the 0.618 Fibonacci retracement to move back towards resistance.
Since 2021, Dogecoin has continued to trade below the 0.618 Fibonacci level, which currently sits at $0.4766. Nevertheless, the Market rally led by Donald Trump early November 2024 led to a push towards this level a month later.
Data shows that Dogecoin soared 220%, from a price of $0.1513 in November 2024 to a high of $0.4843 in early December. basically breaking through the 0.618 Fibonacci resistance for the first time in over three years. Interestingly, another pullback occurred, leading to a fall below the Fibonacci level as the bulls failed to defend the support.
The historical context suggests an imminent escape
Despite this, analysts believe that a successful breakout is on the horizon. Notably, Crypto Surf weekly chart data confirms that the 0.618 Fibonacci level has been a historical point of interest for DOGE.
To recall, after the COVID-19 stock market crash, Dogecoin engineered a recovery surge that helped it hit the Fib. In early January 2021, the 0.618 level, which aligned with the price of $0.0120 at the time. However, Fibonacci resistance triggered a decline.
Notably, amid the decline, Dogecoin established support at the lower 1.618 Fibonacci level, which stood at $0.00726. at the time. After retesting this support, DOGE embarked on a second bullish surge, this time violate the Fib. Level 0.618 to reach its an all-time high of $0.74 in May 2021. This represents a 6,066% Fib increase. 0.618.
Interestingly, just as in the 2020/2021 cycle, Dogecoin once again found support at Fibonacci 1.618 (now $0.3193). If history repeats itself, a second bull will push towards the Fib. Resistance at 0.618 could lead to a breakout. “Lies don’t lie” » joked Crypto Surf.
Although the analyst did not present any price targets, a 6,066% spike similar to the 2021 rally would lead to a price of $29. However, Dogecoin’s market capitalization at such a price level has left several supporters doubtful. Currently, Dogecoin is changing hands at $0.3629, well above the $0.3193 support.
DisClamier: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.