Dogecoin Pulls Back To ‘The Golden Ratio’ – Analyst Expects A Bullish Reversal
Dogecoin is facing weeks of turmoil, with its price efforts competing for critical levels of resistance while managing to maintain critical demand areas. After the sell-off in early February, the wider meme coin market was underperformed compared to Altcoins and Bitcoin. Dogecoin, however, showed resilience, retaining strength as analysts’ eyes resumed their rally.
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Crypto expert Ali Martinez shared a technical analysis highlighting the key developments of Dogecoin. According to Martinez, Martinez has restored the level of the Fibonacci retracement to 0.618, commonly known as the “golden ratio.” Traders widely view this level as a key support zone, often indicating a potential reversal point for the price trend.
With Dogecoin Maintain this critical leveloptimistic and optimistic, meme coins can prevent rebound. As the Bulls try to build momentum and regain the lost ground, the days ahead will be crucial. Whether Dogecoin can leverage this support and move towards recovery levels remains to be seen, but it remains promising for traders and investors to maintain its capabilities in market volatility. Now, all eyes are on the market, as the market expects its next big move.
Dogecoin can enter the recovery phase
Dogecoin is on the verge of a serious breakthrough, only 5% below key supply levels, which could inspire a return to higher price zones. After months of sales pressure and negative emotions, optimism began to return to the Dogecoin community. Analysts are now calling for a bullish phase that can reshape the narrative of the meme coin market.
Martinez passed Technical analysis shared on Xhighlighting the major developments of Doge. He noted that Dogecoin has restored it to a Fibonacci backtest of 0.618, commonly known as the “golden ratio.” This key technology field is historically known for marking bullish reversals. The ability to maintain this level is a positive signal that Doge may be preparing for a positive upward movement.
If the bulls recouped $0.028 to the nearest supply level and fixed it above it, a dog’s rally might be coming. Breaking this resistance could spark new interest among retail and institutional investors, driving the momentum for Doge to challenge higher goals.
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As Dogecoin hovers near critical levels, the next few days may determine whether it can get rid of months of bearish feelings and begin a new phase of recovery. Investors and traders are watching closely to see if Doge can take advantage of this critical moment to spike in higher prices, indicating a potential turning point for Meme Coin Market.
The supply of Dooger Tests is crucial: Can the Bulls be strengthened?
After Dogecoin successfully launched its 200 daily EMA, it traded at $0.27, with a key level of about $0.26. This move marks a positive shift in momentum, as maintaining 200 EMA is crucial to maintaining short-term intensity. The Bulls are now targeting above the $0.30 level, an important resistance zone that has been suppressed for weeks. If the Bulls support this level, it could inspire recovery rally and potentially push prices to higher ranges.
However, the market remains uncertain and Doge faces the challenge of maintaining its upward trajectory. If the price fails to hold the $0.25 mark, it may mark a return on bearish momentum, bringing Doge to a lower level of demand. A drop below the region could expose prices to further decline, eliminating recent gains and exacerbating negative sentiment.
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Currently, traders are closely monitoring the resistance level of $0.30, which is a potential breakthrough point. Retraction of this level will confirm a bullish reversal and attract new interest from buyers. The next few days will be crucial for Dogecoin to test its resilience and try to consolidate its position above key technical metrics, which sets the stage for potential recovery rally.
Featured images from DALL-E, charts from TradingView
