Dogecoin (DOGE) is at an Important Threshold

The price, which went down to 0.059 in the last drop, gained nearly 4 percent in 24 hours. Ahead of the FOMC meeting to be held in the coming days, DOGE emphasizes the potential for extreme volatility. Fib levels between the July high of $0.0838 and the June low of $0.0530 can be useful to examine critical price areas. According to the tool, the bulls consistently defended the 23.6% Fib level of $0.0603 in June, August, and September.

Between mid-August and mid-September, DOGE consolidated losses above the same 23.6% Fib level ($0.060). A false breakout of the 50 Fib level ($0.068) led to a pullback from $0.060 in late August. If September 20 goes well for the general market, we can see the price targeting the $0.0648 and $0.0684 levels. If the king crypto can surpass $28,000, $0.075 would be possible in this scenario.

Another key level that Dogecoin investors should pay attention to is located at $0.0603. A daily close below this zone may lead to a reversal of bullish expectations. In the possible bearish scenario, the targeted support level is at $0.0556. CMF data tells us that investor inflows for DOGE have decreased. RSI, on the other hand, has been in the bottom ranges since mid-August, reinforcing the selling pressure that has increased in the last four weeks. We saw that short selling positions on the futures front were strengthened with the fluctuation in the DOGE price. Especially the short positions that have increased in the last 3 days indicate that the dominant part of day traders is preparing for further declines. Additionally, Binance Futures data showed that DOGE Open Interest has fluctuated over $74 million in the last four weeks (since mid-August). This says that there is stagnant demand for DOGE.