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Dogecoin bounces off key Fibonacci support, suggesting a potential bottom, but resistance still remains.
As of today, Dogecoin changes hands at $0.1571, reflecting a 2.4% increase in the last 24 hours, with a market cap of $23.84 billion. The top meme coin has demonstrated a degree of resilience, bouncing between $0.1533 and $0.1625 in the past 24 hours.
In the longer timeframes, Dogecoin has experienced a period of notable volatility, with the price showing a decline of approximately 8.9% in the last seven days. This downward movement has led to a 14-day price drop of around 4.8%, indicating sustained pressure. As DOGE recovers in the short-term, traders are looking for signs that the meme coin has already hit its bottom.
Dogecoin Price Analysis
Looking at daily price action, technical indicators show that DOGE is preparing to test the 0.236 Fibonacci retracement level (around $0.1654), after bouncing off its main support at 0 Fibonacci level at 0.15178. This level has held relatively well so far, suggesting that the price might have hit its bottom there.
However, there remain additional Fibonacci zones to watch, including the 0.382 and 0.5 retracement levels at $0.1738 and $0.1807, respectively, which could act as resistance if the price starts to recover.
The Relative Strength Index stands at 39.35, which is in a neutral to slightly oversold zone. While this indicates that Dogecoin is not yet in extreme oversold territory (below 30), it suggests that the asset still has room for price movement in either direction.
The current RSI value indicates that Dogecoin may not have reached its bottom yet, as the market sentiment still leans toward further downside.
Analyst Highlights Most Significant Support
Meanwhile, Analyst Ali Martinez’s post highlights a cost basis range for 27.4 billion Dogecoin, which investors accumulated at $0.08.
This means that investors purchased the DOGE at this price level, making it the most important support zone. Given that $0.08 marks the price at which a whales purchased a significant volume of Dogecoin, it establishes this level as the most significant support range for DOGE.
Additionally, the upper cost basis range rests between $0.201 and $0.205, with 12.16 billion DOGE accumulated in this range. This region likely serves as a resistance zone. If Dogecoin experiences a rally, these holders might begin to sell and lock in profits, potentially capping upward price movements.