Dogecoin (DOGE) Maintains Support Amid Market Weakness, Bulls Seek Confirmation Bounce
Dogecoin (DOGE) experienced a correction, trading below $0.1780 against the US Dollar but holding the $0.1680 support level. DOGE failed to break the $0.1880 resistance and is now consolidating below the $0.1760 level and the 100-hourly simple moving average. A bearish trend line is forming with resistance at $0.1760. If DOGE remains stable above $0.1680, it could climb toward the $0.1820, $0.1880, or even $0.20 resistance levels, with $0.2120 being a potential next stop. On the downside, a break below $0.1640 could lead to further declines toward $0.1550 or $0.1520. Technical indicators suggest bullish momentum with the MACD gaining strength and RSI above 50.
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Overview of Dogecoin's Price Movement
Dogecoin corrected some gains and traded below $0.1780 against the US Dollar. DOGE is now holding the $0.1680 support and might aim for a fresh increase. DOGE price started a fresh downside correction below $0.1780. The price is trading below the $0.1760 level and the 100-hourly simple moving average. There is a bearish trend line forming with resistance at $0.1760 on the hourly chart of the DOGE/USD pair (data source from Kraken). The price could aim for a fresh increase if it remains stable above $0.1680.
Dogecoin Price Faces Resistance
Dogecoin price started a downside correction after it failed to clear $0.1880, similar to Bitcoin and Ethereum. DOGE declined below the $0.1820 and $0.1800 levels. There was a movement below the 50% Fibonacci retracement level of the upward move from the $0.1568 swing low to the $0.1858 high. However, bulls remained active near the $0.1680 support, and now the price is attempting to rise again above $0.1720.
Resistance Levels and Bullish Scenarios
Dogecoin price remains below the $0.1780 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.1760 level, where there is also a bearish trend line on the hourly chart of the DOGE/USD pair. The first major resistance for bulls is near $0.1820, and the next significant resistance lies around $0.1880. A close above this level might send the price toward $0.1920, with potential gains pushing the price toward $0.20 or even $0.2120.
Possible Downsides for Dogecoin
If DOGE price fails to climb above the $0.1820 level, it could continue to move downward. Initial support on the downside is near $0.1700, with the next major support at $0.1680. Additionally, the 61.8% Fibonacci retracement level of the upward move from $0.1568 low to $0.1858 high aligns with this support level. If there’s a break below $0.1640, the price could decline further toward $0.1550 or even $0.1520 in the short term.
Technical Indicators
- Hourly MACD: The MACD for DOGE/USD is now gaining momentum in the bullish zone.
- Hourly RSI: The RSI for DOGE/USD is above the 50 level, indicating positive potential.
- Major Support Levels: $0.1700 and $0.1680.
- Major Resistance Levels: $0.1760 and $0.1820.