Dogecoin Price Faces ‘Moment Of Truth’ As It Battles The Macro 0.5 Fib Extension
Dogecoin price currently fighting There is another breakout above the $0.4 price level, but technical analysis suggests this may not be the only challenge facing the meme-inspired cryptocurrency. According to technical analysis from crypto analyst Kevin (@Kev_Capital_TA), Dogecoin is currently locked at Fighting against key resistance levels Defined by the macro 0.5 Fibonacci extension, this could determine whether the price is able to break higher levels above $0.4 or face fresh selling pressure.
Macro 0.5 Fibonacci Expansion Resistance Key Moment
The Fibonacci extension indicator is a commonly used tool among technical analysts for determining price targets and resistance levels. Taking Dogecoin as an example, cryptocurrency analyst Kevin took advantage of this Fibonacci extensions are expected to begin from the cryptocurrency’s mid-October lows around $0.15. For Dogecoin, the macro extension at 0.5 Fib represents a significant obstacle to the upward momentum.
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This 0.5 Fib expansion is also noteworthy considering that it was located near the order block during Dogecoin’s recent correction. Cryptocurrency analyst Kevin highlighted this resistance level as a “moment of truth” and emphasized that a successful breakout of this level is crucial for DOGE to target macro gold pockets.
Given recent market dynamics, Dogecoin’s ability to overcome this resistance may depend on broader market movements, Especially the performance of Bitcoin.
#Dogecoin An all-out battle is underway with the macro 0.5 Fib extension. This is a big resistance and the key to getting it back into the macro gold pocket. #dog Success here will entirely depend on #BTC Its macro gold pocket breakthrough ability. Truth time, folks. pic.twitter.com/vWtfpVahv1
— Kevin (@Kev_Capital_TA) January 6, 2025
Bitcoin’s role in Dogecoin price momentum
BitcoinAs the dominant cryptocurrency, it always sets the tone for the broader market, including other large-cap altcoins like Dogecoin. Interestingly, Bitcoin inflows and their latest developments Breakthrough or above Price levels that once again breached the $100,000 level have seen flows into other cryptocurrencies over the past 24 hours.
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Kevin pointed out this correlation between Dogecoin and Bitcoin, stressing that Dogecoin’s ability to break into its macro gold pocket will depend on Bitcoin’s ability to break out of its own macro gold pocket. If Bitcoin manages to break out of its gold pockets, it could give Dogecoin the momentum it needs to overcome the 0.5 Fibonacci resistance level. However, Bitcoin’s failure could leave Dogecoin vulnerable to further consolidation or even another downward correction.
A golden pocket refers to a specific range within Fibonacci extension levels, typically the area between the 0.618 and 0.65 Fibonacci extension levels. When called a macro gold pocket, it indicates that the Fibonacci indicator is being applied to a larger time frame, such as a weekly or monthly chart, and is for long-term price action. In the previous analysisKevin identifies $0.49 as a “macro gold pocket.” Additionally, he pointed to this level as the first major resistance zone for Dogecoin Bulls must push higher Bullish breakout.
As of this writing, Dogecoin is trading at $0.39, up 25.5% in the past seven days.
Featured image created using Dall.E, chart from Tradingview.com
