What's Next For Dogecoin Amid Market Correction? Analyst Identifies This Level As 'Key' Support To Watch

Amid the ongoing slump, an influential cryptocurrency analyst identified a crucial support level for Dogecoin (CRYPTO: DOGE) on Tuesday that investors should closely monitor.

What Happened: Ali Martinez, known for identifying chart patterns and issuing price predictions, shared insights on the Dogecoin’s price action in an X post.

The analyst noticed that the meme-based cryptocurrency has followed a rising trendline since October 2023. This trendline now converges with the 61.8% Fibonacci retracement level at $0.13, making it a “key” support level to keep an eye on.

Fibonacci retracement is a technical analysis tool that uses ratios derived from the Fibonacci sequence to determine probable support and resistance levels. These are then used to predict reversals or continuations.

The 61.8% level, often referred to as the “golden ratio,” is particularly significant.

See Also: Bitcoin, Ethereum, XRP, Dogecoin Obliterate $1.42 Billion In Liquidations, Plummet Up To 16%

Why It Matters:  Notably, the world’s largest meme coin has been under considerable selling pressure recently, sliding more than 15% over the week and 17% over the month.

Speculative interest for the coin has dwindled, with the Open Interest falling over 75% from January highs, according to Coinglass. That said, the Long/Short ratio was over 1, signaling that the number of traders holding long positions was higher than those betting on its price decline.

Meanwhile, the crucial Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, flashed a “Sell” signal for DOGE, according to TradingView.

Conversely, Williams Percent Range, another momentum indicator used to ascertain whether an asset is overbought or oversold, signaled “Buy,” suggesting that a reversal might be around the corner.

Price Action:  At the time of writing, Dogecoin was exchanging hands at $0.1434, down 4.91% in the last 24 hours, according to data from Benzinga Pro. Year-to-date, the cryptocurrency was down 54.48%.

Image via Shutterstock

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