Dogecoin Eyes $0.425 as Fibonacci Levels Signal Potential Breakout

Dogecoin—DOGE, is showing signs of a potential breakout. In the last 24 hours, DOGE has maintained strong weekly returns, signaling a possible rally. With technical indicators and whale activity on the rise, Dogecoin may be on the verge of a breakout. Fibonacci levels suggest a key price target of $0.425 could be within reach.

Dogecoin Shows Bullish Signs Amid Price Recovery

Recently, Dogecoin’s price has been consolidating after a major pullback. Fibonacci levels from early December show that Dogecoin is currently sitting under the 38.20% Fibonacci level at $0.3435. 

The 23.60% level didn’t sustain the bullish momentum, but the $0.30 mark has acted as strong support. Over the past four hours, a bullish engulfing candle has formed, suggesting that Dogecoin may be ready for a rally.

The current price is above the 20-EMA line, trading at $0.32081. The daily Relative Strength Index (RSI) is rising and has crossed the 50% halfway mark, signaling increasing buying pressure. 

This upward movement hints at a possible reversal rally. If this momentum continues, Dogecoin may target $0.3438, according to Fibonacci levels.

Whale Activity and Technical Signals Support the Bullish Outlook

In the past 48 hours, over 90 million DOGE tokens were purchased. With whales holding 22.13 billion DOGE tokens, their support could drive a breakout. The TD Sequential Indicator has also flashed a buy signal, confirming the bullish outlook. 

This signal appeared when the price was $0.31556, reinforcing the idea of a rounding bottom reversal. With strong whale support and technical indicators aligning, Dogecoin’s price could soon target the $0.3438 level. 

If the rally extends, the next resistance at the 78.60% Fibonacci level sits at $0.425. The $0.30 psychological support will remain crucial for preventing further downside risks.