Dogecoin is in the technical area this will look very familiar for traders who have been tracking its rise in 2024. The weekly chart shows Dogecoin pushing into a long-term Fibonacci fan structure taken from the 2021 high, with the current retest approaching the 0.618 Fib fan following a similar fan retest at the 0.5 Fib level preceding the substantial move in October 2024.
This technical setup does not confirm the breakout in itself, but it puts Dogecoin in one of the most significant weekly decision points in months.
Dogecoin returns to the familiar structure of Fib fans
Main idea this technical analysis is that Dogecoin is still in a long-term descending resistance structure that started at its 2021 all-time high price of $0.7316. However, the analysis also used an compelling Fibonacci wave indicator in the form of expanding fan lines extending from the memecoin price peak.
These lines have acted as long-term resistance and breakout markers in the post-2021 DOGE structure. Price spent most of 2022 and 2023 below these fan lines, only starting to recover more strongly after regaining one of them.
There is a comparison retest from October 2024. During this time, DOGE dropped below the 0.5 Fib fan area, maintained the below structure for a while, and then experienced a rally that pushed the price all the way to $0.48 in December 2024. The chart currently shows a similar retest developing around the 0.618 Fib fan, with Dogecoin price currently trading in a range of $0.10 to $0.11.
Dogecoin price chart. Source: @_CryptoSurf on X
Is Dogecoin getting ready for another wave?
Dogecoin’s current interaction with the indicator shows that it can test whether another Fib level can act as support. If this happens, the configuration will indicate this Dogecoin is building another one Fib fan base similar to Q4 2024 result.
The ideal bullish run scenario is for DOGE to hold above $0.095, break through $0.115, and start climbing above $0.14. This would make the 0.618 Fib fan retest more closely resemble the October 2024 setup where the technical stop occurred ahead of the larger wave.
On the other hand, if the setup fails, the repeating pattern loses credibility and the price of Dogecoin may go back to lower support zones. A weekly break below $0.095 would weaken the current pattern and lead to consolidation between $0.095 and $0.08.
Dogecoin’s current price structure it’s not bullish yet, however, if history is a precedent, the most likely scenario is a bullish play as Dogecoin has never spent a significant amount of time below any Fibonacci fan level.
At the time of writing, Dogecoin is trading at $0.1028.
Featured image from Pixabay, chart from TradingView
