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Dogecoin price is currently being ordered breaking above the $0.4 price level again, but technical analysis suggests that may not be the only thing against the meme-inspired cryptocurrency. According to the technical analysis of crypto analyst Kevin (@Kev_Capital_TA), Dogecoin is currently locked war on the main level of resistance the macro 0.5 Fibonacci extension is defined, which can determine whether the price can enter higher levels above $0.4 or face renewed selling pressure.
Moment Of Truth In Macro 0.5 Fibonacci Extension Resistance
The Fibonacci extension indicator is a popular tool among technical analysts to identify price targets and resistance levels. In the case of Dogecoin, crypto analyst Kevin he used this A Fibonacci extension is predicted from a low of around $0.15 in mid-October. For Dogecoin, the macro extension 0.5 Fib represents an important barrier that is holding higher momentum.
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This 0.5 Fib extension is also noteworthy, considering that it is located near the order block during Dogecoin’s recent correction. Crypto analyst Kevin highlighted this resistance level as a “moment of truth,” stressing that a successful breach of this level is essential for DOGE to aim for a large gold package.
Considering recent market volatility, Dogecoin’s ability to overcome this resistance will likely depend on broader market movements, especially in Bitcoin operations.
#Dogecoin in full battle with macro extension 0.5 Fib. This is a great resistance and is the key to making it back to the big gold pack. #DOGE success here will be fully dependent #BTC the ability to get out of its big gold pocket. The moment of truth folks. pic.twitter.com/vWtfpVahv1
— Kevin (@Kev_Capital_TA) January 6, 2025
Bitcoin’s Role in Dogecoin’s Price Momentum
Bitcoinas the leading cryptocurrency, it often sets the tone for the broader market, including other major altcoins in the market such as Dogecoin. It is interesting that the entry of Bitcoin and its latest break more than $100,000 is the price level and in the last 24 hours it has flowed to other cryptocurrencies.
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Kevin noted this correlation between Dogecoin and Bitcoin, highlighting that Dogecoin’s movement in its large gold pocket will depend on Bitcoin’s ability to move out of its large gold pocket. If Bitcoin is able to break out of its gold pocket, it could provide the necessary impetus for Dogecoin to overcome its 0.5 Fibonacci resistance. However, Bitcoin’s failure could leave Dogecoin vulnerable to further consolidation or another reversal.
A gold pocket refers to a certain range within the Fibonacci extension levels, usually the area between the 0.618 and 0.65 Fib extension levels. When it is called a big gold pocket, it shows that the Fibonacci indicator is used in a larger time frame, such as weekly or monthly charts, and is in a long-term price trend. In the previous analysisKevin identified $0.49 as a “big gold packet.” In addition, he noted that this level is the first point of resistance for Dogecoin the bulls must push up for a bullish breakout.
At the time of writing, Dogecoin is trading at $0.39, up 25.5% over the past seven days.
The featured image was created with Dall.E, a chart from Tradingview.com