Update doge on fire.1. Fibonacci Retracement Levels
The chart uses Fibonacci retracement levels to track the correction after the price reached a high of around 0.43850.
Key levels are:
61.8% (0.40110): This is a significant resistance level. If the price tests this level and fails to break through, it could indicate a potential further downward move.
50.0% (0.38955) and 38.2% (0.37800): Additional resistance levels, suggesting that if the price cannot surpass these levels, it may strengthen the bearish trend.
Currently, the price appears to be testing the 61.8% level. If it fails to break above, there is a high likelihood that the price will continue to move down.
2. Wave A-B-C and Wave C Targets
Wave A represents the initial downward movement from the peak (Point 1), followed by Wave B, which is a corrective uptrend that couldn’t reach the previous high.
Wave C is expected to be a continuation of the downtrend, often marking a new low.
Based on the Fibonacci extension, the key targets for Wave C are:
Levels 0.618 and 1.0, approximately 0.34 to 0.36 – This could be the first support level to be tested if the price drops to this zone.
If this level doesn’t hold, the price may test the 1.382 level (0.28), which is a significant psychological support and may attract buying interest.
3. Projected Price Path
The dashed lines and projected path suggest a potential downtrend towards the 0.34 to 0.28 range based on the Fibonacci extension targets.
Additionally, if there are signs of recovery in these support areas, it could be a positive signal for re-entering the market. However, if the price breaks below 0.28, it may indicate a stronger long-term downtrend.
Summary:
This analysis suggests that:
If the price tests the 61.8% level (0.40110) and fails to break it, the price may likely move down towards the Fibonacci extension levels.
The target for the correction might be around 0.34 to 0.28, which are key support levels for Wave C.
Monitoring for a recovery signal at these support levels is recommended, as it could indicate a potential price reversal.
Keep in mind that technical analysis is only a forecast based on historical data, and nothing is certain.