Dogecoin (DOGE) Profit-Taking Strategy: Key Fibonacci Levels to Watch
A seasoned analyst has outlined a strategic selling approach for Dogecoin, leveraging Fibonacci retracement levels to maximize profits while minimizing downside risks. According to his analysis, he plans to offload a significant portion of his DOGE holdings if the price reaches the 0.702 or 0.786 Fibonacci levels and struggles to break through. This method aims to lock in gains ahead of potential market weakness, ensuring capital preservation in a volatile environment.
Based on his projections, Dogecoin could reach a local top by late April or early May, followed by a potential pullback. He expects a significant market downturn around March 2025, prompting him to sell between $0.32 and $0.42 rather than waiting for a push toward $1. If DOGE successfully surpasses the 0.702 Fib resistance at $0.43, it could reclaim bullish momentum, setting sights on higher Fibonacci extensions, including $0.55 (0.888), $0.76 (1.0), $1.60 (1.272), $2.60 (1.414), and $4.10 (1.618)—a highly optimistic long-term target.
However, failure to clear this resistance could signal broader market weakness, leading to a potential downturn. In such a scenario, Dogecoin might retreat to lower Fibonacci support levels, including $0.139 (0.382), $0.09 (0.236), $0.07 (0.136), and ultimately $0.049 (0 Fib level). The expert remains cautious, prioritizing profit-taking over unnecessary risk exposure in an unpredictable market.