Dogecoin started a downward correction from the $0.4050 area against the US Dollar. DOGE coin is now consolidating and may attempt a new increase if it crosses the $0.3680 resistance level.
- DOGE price started a new decline below $0.4050 and $0.380.
- The price is trading below the $0.3750 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance at $0.3650 on the hourly chart of the DOGE/USD pair (data source from Kraken).
- The price could start another increase if it crosses the $0.3650 and $0.3680 resistance levels.
Dogecoin price drops to support it
Dogecoin price started a new decline from the $0.4050 resistance area, unlike Bitcoin and Ethereum. DOGE fell below the $0.400 and $0.380 support levels. It even rose to below $0.350.
A bottom was formed at $0.3380 and the price is now consolidating its losses below the 23.6% Fib retracement level of the downward move from the $0.3860 swing high to the $0.3380 low. There is also a major bearish trend line forming with resistance at $0.3650 on the hourly chart of the DOGE/USD pair.
Dogecoin price is now trading below the $0.3750 level and the 100 hourly simple moving average. Immediate resistance on the upside is near the $0.3650 level and the trend line.
The first major resistance for the bulls could be near the $0.3680 level or the 61.8% Fibonacci retracement level of the downward move from the $0.3860 swing high to the $0.3380 low. The next major resistance is near the $0.3750 level.
A close above the $0.3750 resistance level could send the price towards the $0.3860 resistance level. Any further gains could send the price towards the $0.40 level. The next major stop for the bulls could be $0.420.
Another decline in DOGE?
If DOGE price fails to rise above the $0.3750 level, it may start another decline. Initial support on the downside is near the $0.340 level. The next major support is located near the $0.3380 level.
The main support is located at $0.3250. If a bearish breakout occurs below the $0.3250 support level, the price could fall further. In the mentioned case, the price may fall towards the $0.3020 level or even $0.300 in the near term.
Technical indicators
Hourly MACD – The MACD for DOGE/USD is now gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.
Key support levels – $0.3380 and $0.3250.
Key resistance levels – $0.3650 and $0.3750.