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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