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Dogecoin (DOGE) Rally on Hold: Can Momentum Kick Back In?

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Dogecoin started a downward correction below the $0.400 support level against the US Dollar. DOGE is now consolidating and may be aiming for a new rally above $0.4050.

  • DOGE price started a new decline below the $0.40 level.
  • The price is trading below the $0.4050 level and the 100 hourly simple moving average.
  • There is a solid uptrend line forming with support at $0.3950 on the hourly chart of the DOGE/USD pair (data source from Kraken).
  • The price may start another rise if it crosses the $0.4050 and $0.4150 resistance levels.

Dogecoin price is looking forward to a new increase

Dogecoin price started a new decline from a level well above $0.410 unlike Bitcoin and Ethereum. DOGE was trading below the $0.4020 and $0.400 support levels. It even rose to below $0.3980.

The bottom was formed at $0.3963 and the price is now consolidating losses. It recovered some points and rose above $0.40. It has crossed the 23.6% Fibonacci retracement level of the downward move from the high of $0.4136 to the low of $0.3963.

Dogecoin price is now trading below the $0.4050 level and the 100 hourly simple moving average. There is also a solid uptrend line forming with support at $0.3950 on the hourly chart of the DOGE/USD pair.

Immediate resistance on the upside is near the $0.4025 level. The first major resistance for the bulls could be near the $0.4050 level. The next major resistance is near the $0.4095 level or the 76.4% Fib retracement level of the downward move from the $0.4136 high to the $0.3963 low.

A close above the $0.4095 resistance level could send the price towards the $0.4150 resistance level. Any further gains may send the price towards the $0.4350 level. The next major stop for the bulls could be $0.4500.

More losses in DOGE?

If DOGE price fails to rise above the $0.4050 level, it may start another decline. Initial support on the downside is located near the $0.3980 level. The next major support is near the $0.3950 level.

The main support is located at $0.3750. If a bearish breakout occurs below the $0.3750 support level, the price could fall further. In the mentioned case, the price may fall towards the $0.350 level or even $0.3420 in the near term.

Technical indicators

Hourly MACD – The MACD for DOGE/USD is now losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.

Key support levels – $0.3980 and $0.3750.

Key resistance levels – $0.4050 and $0.4095.

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