Dogecoin Price Could Rally If It Reclaims This Fibonacci Level

[Ben Graham]

The Dogecoin price is currently trading within a tight range as analysts evaluate its next potential move. Recent technical analysis has focused on specific price levels that could influence future movement. They suggest that a shift in broader crypto momentum, combined with a crucial Fibonacci level reclaim, may set the stage for a renewed, explosive upside for DOGE. 

Dogecoin Price Faces Key Test At $0.138 

Dogecoin has been trending downwards for months now, as it faces pressure from ongoing volatility and an overall market slowdown. Although DOGE’s price remains below $0.13 after declining consistently over the past few months, crypto market analyst Kevin has outlined conditions under which the meme coin’s price could recover and see a strong upside soon. 

In an X post on Tuesday, Kevin pointed to the $0.138 level as a critical area that must be reclaimed on a strong higher time frame three-day to one week closes. According to his view, such a move would mark a meaningful shift in Dogecoin’s momentum and signal renewed strength after an extended period of consolidation. He also disclosed that a recovery would open the door to a potentially massive price rally for the meme coin. 

The analyst explained that reclaiming the $0.138 level would place Dogecoin back above a key macro Fibonacci retracement around 0.382. This Fibonacci level has acted as an important dividing line between bearish and bullish market phases in the past. As a result, a move above it could suggest that long-term buyers are regaining control. 

Kevin also emphasized the significance of the 200-week Simple Moving Average (SMA) on the chart, noting that it often serves as a key support or resistance level during significant trend changes. A decisive move above this key level would validate the analyst’s bullish perspective, signaling that Dogecoin could be nearing the end of its correction and preparing to transition into a stronger market phase. 

Notably, once this structural change occurs, Kevin’s chart points to the next major liquidity and resistance zone, which sits around $0.46. 

Dogecoin Price Rally Tied To Bitcoin’s Momentum 

In his accompanying chart, Kevin shows that Dogecoin is currently trading sideways within what appears to be a DCA zone. This range reflects extended consolidation where price has failed to make a decisive move in either direction.

The chart setup suggests that any meaningful breakout in Dogecoin’s price would likely coincide with renewed strength in Bitcoin. Kevin notes that Bitcoin reclaiming the $88,000 to $91,000 region could support bullish momentum across the crypto market and influence a potential price rally for Dogecoin. 

A move toward this range would require the leading cryptocurrency to rally by approximately 2-6% from its present price level. Without that confirmation, the analyst believes that DOGE may continue consolidating within its current narrow range.