Dogecoin (DOGE) has surged 5.6% in the past 24 hours, reaching $0.265 per token and driving a notable increase in the total market cap of meme coins due to its strong dominance.
As the leader of the meme coin sector, DOGE has shown remarkable resilience during the recent market downturn. Its year-to-date losses stand at 18.3%, faring better than Shiba Inu (SHIB) and Bonk (BONK), which have declined by 23.4% and 42.6%, respectively.
However, buyers quickly stepped in, accumulating DOGE in large volumes and driving its recovery to current levels. Weekly charts are typically used by swing traders to predict long-term market trends. In this case, Martinez is using Fibonacci retracement levels to determine where DOGE could be heading.
Just ten days ago, DOGE briefly plummeted to $0.20 following a flash crash triggered by Donald Trump’s announcement of higher tariffs on Mexican and Canadian imports.
Despite this apparent weakness, momentum indicators are favoring a bullish breakout as the Relative Strength Index (RSI) seems ready to make a move above the signal line.
The Dogecoin (DOGE) daily chart shows that the $0.26 resistance is the most critical to overcome in the near term for the token. This former area of support has now turned into a critical ceiling for DOGE and bulls have already failed multiple times to recapture it.
Later today, the U.S. Bureau of Labor Statistics will release its highly anticipated January inflation report. Analysts expect a 0.3% month-over-month increase, with the annualized figure projected at 2.9%—a figure largely in line with the previous month.
At the same time, the MACD is showing a steady decline in negative momentum, suggesting that selling pressure is easing and a potential shift in trend could be on the horizon.