- Dogecoin bounces between $0.1533 and $0.1625 after testing 0 Fibonacci level at $0.15178.
- Token declined 11% over seven days amid sustained pressure.
- Analyst Ali Martinez identifies $0.08 as most critical support with 27.4 billion DOGE accumulated.
Dogecoin has bounced off key Fibonacci support, suggesting a potential bottom formation, though resistance levels still pose challenges. The top meme coin has shown a degree of resilience, trading between $0.1533 and $0.1625 over the past 24 hours.
In longer timeframes, Dogecoin has faced notable volatility, with price showing a decline of approximately 11% over the last seven days. As DOGE recovers in the short term, traders are searching for signs the meme coin has reached its bottom.
Technical levels define recovery path
Daily price action reveals technical indicators show DOGE is preparing to test the 0.236 Fibonacci retracement level around $0.1654, after bouncing off main support at the 0 Fibonacci level at $0.15178. This level has held relatively well, suggesting price might have bottomed there.
However, additional Fibonacci zones remain under observation, including the 0.382 and 0.5 retracement levels at $0.1738 and $0.1807 respectively. These could act as resistance if price begins recovering from current levels.
The Relative Strength Index stands at 39.35, positioned in a neutral to slightly oversold zone. While this indicates Dogecoin has not yet reached extreme oversold territory below 30, it suggests the asset retains room for price movement in either direction.
The current RSI value indicates Dogecoin may not have reached its bottom yet, as market sentiment still leans toward further downside potential. A move below the 0 Fibonacci support at $0.15178 could trigger additional selling as stop losses are activated.
Whale accumulation zones provide roadmap
Analyst Ali Martinez’s analysis highlights a cost basis range for 27.4 billion Dogecoin accumulated at $0.08. This means investors purchased DOGE at this price level, establishing it as the most important support zone for the token.
Given that $0.08 marks the price where whales purchased significant volume of Dogecoin, it establishes this level as the most critical support range for DOGE. A decline to this level would represent approximately 50% downside from current prices.
The upper cost basis range rests between $0.201 and $0.205, with 12.16 billion DOGE accumulated in this region. This area likely serves as a resistance zone that could cap rallies.
If Dogecoin experiences upward momentum, holders in this range might begin selling to lock in profits, potentially limiting upward price movements.
