Notably, the 0.61 Fibonacci retracement level appears as a key pivot point where Dogecoin’s price action eventually found strong support. This support was around the $0.188 price low on August 2, where it bounced upwards and has closed three bullish 3-day candles since then. MMBTtrader interpreted these candles as a healthy signal, suggesting that over-leveraged long positions have already been flushed out, and Dogecoin’s price action is now in a more stable state for a strong upside move.
Now that Dogecoin seems to have bounced from its retest of the descending trendline, the analyst highlighted some targets on the way to $1. The first price target is $0.32, which aligns with the 0.236 Fibonacci resistance and acted as a strong support level in December 2024. As such, breaching this level would represent a decisive break above a support-turned-resistance situation.
At the time of writing, Dogecoin is trading at $0.2355, up by 6.2% and 17.7% in the past 24 hours and seven days, respectively. The most important thing for bullish momentum right now is to hold above the 0.5 Fib level at $0.216.
Featured image from Unsplash, chart from TradingView
