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Thinking Of Selling Dogecoin? Analyst Says These Fibonacci Levels Are Important
The broader market is in decline, and like many top cryptocurrencies, Dogecoin (DOGE) faces bearish pressure with volatile price movements. Given its currently weak position, many have considered selling off their bags. With this in mind, a crypto analyst has outlined his sell-off strategy, highlighting key Fibonacci levels that could serve as optimal exit points.
Dogecoin Sell Strategy: Fibonacci Levels To Watch
In a recent X (formerly Twitter) post, crypto analyst the Charting Guy discussed his strategy for selling Dogecoin based on Fibonacci extension and retracement levels and overall market trends. The analyst declared that if the Dogecoin price rises to the 0.702 or 0.786 Fibonacci level over the next few months and fails to break above it, he would sell off the majority of his DOGE holdings. This selling strategy aims to mitigate potential losses and attain as much profit as possible, even with the market’s weakness.
The Charting guy disclosed that his thesis for the future Dogecoin price action suggests that a bottom may be forming, followed by a potential market peak by late April or early May. He announced that he planned to sell his bags close to this price peak, expecting a severe breakdown to new lows in March 2025.
Sharing a Dogecoin price chart on a weekly time frame, the Charting guy draws several Fibonacci retracement and extension levels from a key high and low. The 0.702 Fib level at $0.43 is acting as a potential resistance zone for Dogecoin.
If the meme coin can claim and break through this resistance level, the crypto analyst predicts that it could regain its former bullish momentum and aim for higher Fibonacci levels. This could lead to a gradual climb past key Fib levels: 0.618 ($0.26), 0.786 ($0.42), 0.888 ($0.55), 1 ($0.76), 1.272 ($1.60), 1.414 ($2.36), and ultimately 1.618 ($4.1), the highest bullish target.
On the flip side, if Dogecoin fails to break this level and gets rejected, it would confirm a broader market weakness and possibly lead to a deeper price correction to lower Fibonacci support levels of 0.382 ($0.139), 0.236 ($0.09), 0.136 ($0.07), and 0 ($0.0491).
Before then, the Charting guy stated that he would sell his bags rather than hold out for a rise to $1. He plans to exit the market between $0.32 and $0.42, prioritizing profit taking over unnecessary risks.
Golden Pocket Weakens DOGE’s Bullish Outlook
While the Charting Guy projects a bullish and bearish outlook for Dogecoin, the crypto analyst also highlights that the popular meme coin has weakened, reinforcing the possibility of a more negative price action. He disclosed that Dogecoin lost its Golden Pocket around the 0.618 ($0.267)—0.65 Fib ($0.30) levels.
This Golden Pocket loss had weakened DOGE’s position, making it riskier to hold long-term and invalidating the analyst’s bullish charts.
Featured image from Unsplash, chart from Tradingview.com
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