Recently, the entire cryptocurrency market has seen a massive influx of funds, particularly evident in the past 24 hours, with Dogecoin riding the wave and making rapid gains.
A significant influx of funds has caused Dogecoin's price to surge about 16% in the past 24 hours, with the $0.40 mark seemingly within reach.
From a technical perspective, for Dogecoin to solidify a stronger upward trend and challenge historical highs, it must break through the 'macro golden pocket' around $0.49.
$0.49 Macro Golden Pocket: First Barrier
If Dogecoin wants to challenge its historical high, it must first break through several key resistance levels. Based on Dogecoin's bear market lows from 2022 to 2023, Fibonacci extension levels have identified key price points for the bull market, starting with the 'macro golden pocket' at $0.49.
It is regarded as the first major resistance zone for Dogecoin to initiate a bullish breakout and is a key extension point of the Fibonacci indicator, close to the Fibonacci level of $0.65.
Interestingly, the 'macro golden pocket' at $0.49 is also the peak of Dogecoin's stunning rebound at the end of 2024, which triggered a pullback after this decline, eventually stabilizing and rebounding at the 0.382 Fibonacci extension level.
Once Dogecoin breaks through the $0.49 barrier, it will be able to touch its price peak in nearly four years.
This will inevitably inject momentum into subsequent upward movements and significantly boost the confidence of investors bullish on Dogecoin, helping them further push up the price.
The Path to Setting New Historical Highs: The subsequent resistance levels are at $0.53 and $0.59.
Here comes the key point: if Dogecoin ultimately breaks through the macro golden pocket price level of $0.49, there are several key prices to watch. After the breakthrough, $0.53 will be the next key resistance, and the Fibonacci retracement level at $0.703 should not be overlooked.
Once it surpasses $0.53, Dogecoin will have to face the 'big boss' at $0.59.
Interestingly, this price level also corresponds to the Fibonacci extension level of 0.76, which is of great historical significance, as it was a must-pass checkpoint for Dogecoin's surge to its historical peak in 2021.
Last time Dogecoin broke through this extension level at $0.59, it quickly reached $0.7316 in just a few days.
Therefore, if Dogecoin can break through $0.59 again, it will clear the obstacles for challenging the previous historical peak and expanding into a new price range. At this moment, Dogecoin's trading price is $0.389, having risen 15.5% and 23.5% in the past 24 hours and 7 days, respectively.