Dogecoin Price Faces ‘Moment Of Truth’ As It Battles The Macro 0.5 Fib Extension

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Right now, Dogecoin is attempting to push past its current price point of $0.4, but technical analysis indicates that it may encounter more than just this hurdle. As per the technical analysis by crypto expert Kevin (@Kev_Capital_TA), Dogecoin is engaged in a struggle against a significant resistance level based on the macro 0.5 Fibonacci extension. This resistance could decide whether the price will surge beyond $0.4 or encounter renewed selling pressure.

Moment Of Truth At Macro 0.5 Fibonacci Extension Resistance

As a researcher, I’ve found the Fibonacci Extension Indicator to be a valuable resource among technical analysis tools, helping me pinpoint potential price targets and resistance levels. In the context of Dogecoin, crypto analyst Kevin applied this Fibonacci extension, extending from the cryptocurrency’s low approximately $0.15 in mid-October. For Dogecoin, the 0.5 macro Fibonacci extension serves as a substantial barrier that has thus far inhibited its upward movement momentum.

 

In light of its location near a significant order block, the 0.5 Fib extension during Dogecoin’s latest correction is worth mentioning. Crypto analyst Kevin marked this resistance level as a “crucial juncture,” indicating that surpassing it would be essential for Dogecoin to target the larger macro golden pocket.

In light of the current market trends, whether Dogecoin can surpass its resistance largely depends on the overall market conditions, especially Bitcoin‘s behavior.

Dogecoin is currently engaged in a fierce struggle against the significant resistance provided by the 0.5 Fib extension. Overcoming this barrier could potentially propel Dogecoin back towards the larger, promising area known as the macro golden pocket. The outcome for Dogecoin hinges largely on Bitcoin’s ability to break free from its own macro golden pocket. This is a critical juncture.

— Kevin (@Kev_Capital_TA) January 6, 2025

Bitcoin’s Role in Dogecoin’s Price Momentum

As the leading cryptocurrency, Bitcoin often influences the overall market, including significant altcoins such as Dogecoin. Notably, when Bitcoin experiences influxes and surpasses $100,000 in price within a 24-hour period, these positive trends tend to impact other digital currencies as well.

Kevin pointed out the connection between Dogecoin and Bitcoin, emphasizing that Dogecoin’s potential move into a larger bullish trend will hinge on whether Bitcoin can break free from its own large bullish trend. If Bitcoin succeeds in breaking free, it might generate the power needed for Dogecoin to surpass its 0.5 Fibonacci resistance. But if Bitcoin falls short, Dogecoin may face additional consolidation or even a possible reversal downward.

The term “golden pocket” signifies a particular section within Fibonacci extension levels, usually encompassing the space between the 0.618 and 0.65 extensions of the Fibonacci indicator. When used in the context of a macro golden pocket, it implies that the Fibonacci tool is being utilized on a more extensive timeframe, such as weekly or monthly charts, focusing on long-term price trends. In his previous analysis, Kevin pinpointed $0.49 as a “macro golden pocket.” Additionally, he emphasized that this level represents a significant resistance zone for Dogecoin bulls to surpass for a bullish breakout.

At the time of writing, Dogecoin is trading at $0.39, up by 25.5% in the past seven days.

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2025-01-07 22:34