Cryptocurrencies kicked off a fresh week of trade on a slightly sour note after the market leader Bitcoin made its way back to $43K. However, a gloomy Monday was not enough to deter Baby Doge Coin from maintaining its gaining spree. The meme token picked up where it left off last week and accumulated an additional 10% surge over the last 24 hours. The token has since maintained to gain but a near-term pullback was incoming.
Nevertheless, bulls could look to strike at the 261.8% and 300% Fibonacci Extension levels during the next leg forward.
Baby Doge Coin 4-hour time frame
BABYDOGE’s snapped a new ATH after recording a near 300% increase from $0.000000001618 to $0.000000006341. Its massive bull run has seen just one major correction so far – a 43% pullback between 6-9 January, which also coincided with a broader market sell-off. Once the buying frenzy resumed last week, BABYDOGE tagged its 200% Fibonacci Extension on the back of an additional 135% jump from $0.000000002711.
However, another round of correction was expected over the next few days. This was because BABYDOGE’s price sat close to the 200% Fibonacci Extension (calculated using BABYDOGE’s decline from $0.000000004826 to $0.000000002711)- an area where traders use to lock in their gains. The 4-hour MACD was also encroaching a bearish crossover and the same would incentivize selling behavior.
Having said that, BABYDOGE’s correction was unlikely to transition to a downtrend. The daily MACD and Awesome Oscillator retained their bullish structure on the daily time frame (not shown) and BABYDOGE would look to target its 261.8% and 300% Fibonacci Extensions during the next upcycle.
Meanwhile, those who are late on BABYDOGE’s bull run should wait for the next pullback to run its course. Buy orders can be placed between the 141.4% Fibonacci at $0.000000005312 and $0.000000004742. However, a stop-loss should be maintained at $0.00000004466. Fears of a deeper sell-off would begin to creep once the aforementioned level is lost.
Why Is Baby Doge Coin Rising?
A fast-growing community and chants of a possible Binance listing may have allowed retail traders to cash in on the BABYDOGE hype. Last week, BABYDOGE became the most traded token among the top 1000 BSC wallets after flipping the world’s largest altcoin- Ethereum. Moreover, its HODLers touched 1.2 Million last week, soon after unconfirmed news regarding a Binance listing made rounds in the media.
Conclusion
Baby Doge Coin bulls could take a break after meeting the 200% Fibonacci Extension. A near-term correction was on the table as the MACD approached a bearish crossover. However, the said retracement would allow traders to jump in on a fresh upcycle. Those who want to ride the BABYDOGE bull train can set up buy orders between $0.000000005312 and $0.000000004742.