- DOGE Faces Critical Resistance – Dogecoin is approaching key Fibonacci retracement levels (0.702 & 0.786), which will determine if it rallies toward $1 or faces a major sell-off.
- Bearish Scenario Could Trigger a Drop – If DOGE fails to break resistance, analysts warn it could fall to $0.382 Fib support or even cycle lows near $0.049.
- April-May Peak Potential – RSI remains weak at 40, and declining On-Balance Volume (OBV) suggests a local top could form between late April and early May, aligning with past cycle trends.
Dogecoin has never been a stranger to wild price swings, but its latest trajectory suggests a make-or-break moment ahead.
A well-known crypto analyst is sounding the alarm, warning that DOGE could see a major sell-off if it fails to clear key Fibonacci retracement levels in the coming months. Traders are zeroed in on the 0.702 and 0.786 Fib levels, as this phase could dictate where DOGE heads next.
DOGE at a Crossroads—What’s at Stake?
Dogecoin’s price is creeping toward critical Fibonacci retracement levels, and according to Charting Guy, these levels are the ultimate decider—either DOGE breaks through or faces a serious downturn.
- Historically, these Fib levels have acted as both breakout triggers and rejection zones, making them essential for predicting DOGE’s next major move.
- If DOGE pushes past the 0.786 level, it could ignite a rally toward the elusive $1 mark.
- But failure to break these levels could lock DOGE into a bearish spiral, mirroring past market cycles and Dogecoin corrections.
What If DOGE Fails to Break Resistance?
If DOGE struggles to clear the 0.702 or 0.786 Fibonacci retracement levels, Charting Guy warns that a downturn is inevitable. He even admitted that if this scenario plays out, he may offload most (if not all) of his DOGE holdings.
- Given DOGE’s cyclical price patterns, traders are already eyeing a potential local top between late April and early May.
- Past Dogecoin surges have often been followed by sharp retracements, making this phase crucial for traders.
- If resistance holds strong, DOGE could tumble to lower support levels, such as the 0.382 Fib retracement or even revisit cycle lows near $0.049.
April-May Target? Technicals Align With Potential Market Peak
At the time of writing, technical indicators are aligning with a projected peak around late April to early May.
- RSI remains below 40, indicating weak momentum—while oversold conditions might spark a short-term bounce, a real uptrend requires RSI above 50.
- On-Balance Volume (OBV) is steadily declining, signaling a drop in buying pressure, even as price spikes occasionally appear.
Historically, DOGE’s biggest rallies have relied on strong social hype and whale activity, both of which remain uncertain factors for a breakout this time around.
With DOGE teetering on the edge, traders need to closely monitor how it reacts at key Fib levels. If DOGE fails to clear resistance, selling pressure could intensify, making a sell-off before the next cycle reset the safest move for investors looking to hedge risk.
