- Dogecoin’s price could face a major downturn if it fails to break key Fibonacci levels
- Analyst warns of a sell-off if DOGE struggles to surpass the 0.702 or 0.786 Fibonacci levels
Dogecoin’s [DOGE] price has always been a rollercoaster ride, but its latest trajectory suggests a defining moment ahead.
A prominent crypto analyst has warned that DOGE may face a major sell-off if it fails to surpass key Fibonacci retracement levels in the coming months.
Traders are closely monitoring the 0.702 and 0.786 Fib levels, making this a critical period for DOGE’s price movement.
What’s at stake for DOGE?
Dogecoin’s price action is approaching a critical juncture as it edges toward key Fibonacci retracement levels that could determine its next major move.
According to analyst Charting Guy, the 0.702 and 0.786 Fibonacci retracement levels will determine whether DOGE continues its ascent or faces a steep correction.
Historically, these levels have served as key resistance and breakout points, making them critical for predicting DOGE’s next move.
A breakout above the 0.786 level could trigger a rally toward the psychological milestone of $1. However, failing to break through these levels would confirm bearish momentum, consistent with broader market cycles and previous DOGE corrections.
Source: X
What happens if DOGE fails to break key Fibonacci levels?
If Dogecoin fails to break past the 0.702 or 0.786 Fibonacci levels, analyst Charting Guy warns of a potential downturn. He has stated that he may sell most, if not all, of his DOGE holdings if this scenario unfolds.
Due to DOGE’s cyclical price behavior, investors are already anticipating a possible local top by late April or early May.
Historical trends support this view, as past Dogecoin rallies were often followed by steep retracements.
If the resistance remains too strong, DOGE could drop to lower support levels, such as the 0.382 Fibonacci retracement, or even revisit previous cycle lows near $0.049.
Bottom now, top in late April/early May?
Technical indicators align with the projected timeline for a top in late April to early May. At the time of writing, the RSI on the daily chart remained below 40, signaling weak momentum.
While this suggests oversold conditions that could trigger a short-term bounce, a sustained uptrend would require a decisive move above 50.
Source: TradingView
The On-Balance Volume (OBV) has been steadily declining, indicating reduced buying pressure despite occasional price spikes.
Historically, DOGE rallies have relied on strong social sentiment and whale activity, both of which are essential for sustaining a breakout.
With a potential major top approaching, traders should closely watch DOGE’s behavior at key Fibonacci levels. If DOGE fails to surpass these levels, the analyst’s prediction might come true: selling could be the wisest choice before the next cycle reset.
