Dogecoin’s latest price movement has stalled at a critical resistance level, preventing a bullish breakout above $0.28. As such, the meme coin is now back to battling to hold above support at $0.25. Interestingly, technical analysis shows that this recent rejection at $0.28 has caused a failed predicted breakout above technical indicators.
Particularly, crypto analyst Kevin (@Kev_Capital_TA) pointed out on social media platform X that Dogecoin has failed to reclaim the macro golden pocket and the weekly bull market support band, leading to bearish developments.
Dogecoin Rejected At Macro Resistance, Weakens Bullish Outlook
Dogecoin has been on an extended retracement from $0.48 for the past eight weeks. This extended retracement was further highlighted by a break below $0.3 at the beginning of February until it reached a low around $0.22 on February 3. Despite this heavy retracement, there were still bullish outlooks, especially as Dogecoin started to trend upwards immediately after.
However, recent price action in the past three days has seen Dogecoin rejecting again and failing to break above technical indicators to cause a bullish sentiment. According to technical analysis by Kevin (@Kev_Capital_TA), the Dogecoin price has rejected on the 3-day candlestick timeframe chart. This rejection caused DOGE’s failure to reclaim the macro golden pocket and the weekly bull market support band.
The golden pocket is a notable Fibonacci retracement zone that often dictates whether an asset continues higher or faces rejection. In this case, Dogecoin’s failure to hold above this level suggests that buying momentum is currently weak.
Without a clear breakout above the macro golden pocket and the weekly bull market support band, Dogecoin could continue to range between $0.22 and $0.28 without any clear upward breakout.
Bitcoin Holds The Key As Altcoins Struggle
Kevin warned that altcoin charts can be misleading, even when they look promising. Rather than fixating on Dogecoin’s isolated movements, it’ll be better to monitor Bitcoin closely, as any significant price shift in the Bitcoin price will likely dictate the next move for Dogecoin and other altcoins. If Bitcoin manages to hold above $95,000 and push higher above $100,000, it could provide the boost Dogecoin needs to finally break above the macro golden pocket and the weekly bull market support band.
Bitcoin is currently trading without a clear bullish trajectory below $100,000, which has flowed into other cryptocurrencies. At the time of writing, Bitcoin is trading at $95,208, down by 1% in the past 24 hours. DOGE is trading at $0.251, down by 4.65% in the past 24 hours and 24% since the beginning of February. The next task right now is not to lose the support at $0.25 because a break below $0.25 could cascade into more declines up until $0.22.
Featured image from iStock, chart from Tradingview.com
