Dogecoin is in a technological space it will look great for traders who followed its 2024 meeting. The weekly chart shows that Dogecoin is holding on to the long-term Fibonacci pattern from the 2021 peak, while the same retest is coming near the 0.618 Fib fan after a similar retest of the 0.5 Fib before the big move in October 2024.
This technical preparation it does not guarantee an explosion itself, but it puts Dogecoin at one of its most important weekly highs in months.
Collaborative Reading
Dogecoin Returns to Popular Fib Fan Pattern
Main idea of this technical analysis is that Dogecoin is still trading within a downward trend that started from the 2021 high price of $0.7316. However, this analysis also uses the interesting Fibonacci wave pattern in the process of expanding the fan lines from the high price of memecoin.
These lines have served as long-term resistance and exit markers for the post-2021 DOGE group. Price spent most of 2022 and 2023 under the lines of these fans, only pushing for a strong recovery when it took one of them.
Comparison with retracement of October 2024. At that time, DOGE fell below the 0.5 Fib fan, which held the structure below for a while, then followed a rally that sent its price to $ 0.48 in December 2024. The chart now shows a similar retracement taking place around the 0.618 Fib fan, with the price of Dogecoin currently trading around $ 0.10 to $ 0.1.
Dogecoin price today Source: @_CryptoSurf On X
Is Dogecoin Preparing for Another Wave?
Dogecoin’s recent correlation with the token suggests that it may be looking for another Fib level to act as support. If it works, the setup means that Dogecoin is building another one base on Fib fan level similar to Q4 2024 run.
The ideal scenario for a bull run is for DOGE to hold above $0.095, break through $0.115, and start climbing back to $0.14. This would make the retracement of 0.618 Fib look like a setup for October 2024, when the technology came before the big wave.
On the other hand, if the implementation fails, the replication loses credibility, and the value of Dogecoin he can go back down support areas. A weekly breakdown below $0.095 would weaken the current trend and lead to a consolidation between $0.095 and $0.08.
Collaborative Reading
Dogecoin price today not fixed, but if history is any example, a bullish playout is the most likely, as Dogecoin has never stayed long below the Fibonacci level.
At the time of writing, Dogecoin is trading at $0.1028.
Image taken from Pixabay, chart from TradingView
