Dogecoin is on an uphill battle to climb back to the $0.4 mark, but it’s facing more than just a price wall. Technical analyst Kevin (@Kev_Capital_TA) points out that Dogecoin is struggling with a critical resistance level, tied to the macro 0.5 Fibonacci extension. Whether Dogecoin can finally push past $0.4 or succumb to selling pressures will hinge on this resistance barrier.
Key Moment at the Macro 0.5 Fibonacci Extension Resistance
For those familiar with technical analysis, the Fibonacci extension is a beloved tool for pinpointing price targets and potential hurdles. Kevin turned to this method, using it to extend from Dogecoin’s October low of about $0.15. This macro 0.5 Fibonacci level has turned into a formidable obstacle, stubbornly blocking upward movement.
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Interestingly, the 0.5 Fibonacci extension aligns with an order block during Dogecoin’s recent dip. Kevin has dubbed this juncture as a "moment of truth," stressing the importance of overcoming this barrier to aim for the "macro golden pocket." Dogecoin’s struggle to clear this resistance mirrors wider market patterns, especially the trajectory of Bitcoin.
How Bitcoin Influences Dogecoin’s Momentum
Bitcoin, the market’s juggernaut, often sets the stage for other cryptocurrencies, including substantial altcoins like Dogecoin. Notably, Bitcoin’s recent surge past $100,000 in the last 24 hours seemed to ripple through the crypto sphere.
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Kevin mentions how Dogecoin’s potential leap into its macro golden pocket hinges heavily on Bitcoin bursting through its own macro golden pocket. Should Bitcoin succeed, it might provide the necessary push for Dogecoin against the 0.5 Fibonacci hurdle. Conversely, if Bitcoin falters, Dogecoin may face more pressure to consolidate or even fall back.
The "golden pocket" refers to a specific segment within Fibonacci levels, typically from 0.618 to 0.65, especially on longer timelines like weekly or monthly charts. Kevin highlighted the $0.49 mark as the "macro golden pocket" and identified it as Dogecoin’s major resistance that bulls need to overcome to foretell a robust upward breakout.
Right now, Dogecoin is holding at $0.39, marking a rise of 25.5% over the past week.
. On Tradingview.com, Dogecoin makes its approach to $0.4.
Featured image crafted with Dall.E, chart from Tradingview.com
