Dogecoin (DOGE) Pauses After Gains, Setting Up for a Possible Sharp Move

[Ben Graham]

Dogecoin started a steady increase above $0.1550 against the US Dollar. DOGE is now consolidating and might decline sharply if it trades below $0.1490.

• DOGE price started a fresh increase above $0.1480 and $0.150.
• The price is trading below the $0.1520 level and the 100-hourly simple moving average.
• There is a bullish trend line forming with support at $0.1495 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 $0.1490.

Dogecoin Price Consolidates Gains

Dogecoin price started a fresh increase after it settled above $0.1450, like Bitcoin and Ethereum. DOGE climbed above the $0.150 resistance to enter a positive zone.

The bulls were able to push the price above $0.1525. A high was formed at $0.1565 and the price is now correcting some gains. There was a move below the 23.6% Fib retracement level of the upward move from the $0.1330 swing low to the $0.1565 high.

Dogecoin price is now trading below the $0.1520 level and the 100-hourly simple moving average. Besides, there is a bullish trend line forming with support at $0.1495 on the hourly chart of the DOGE/USD pair.

If there is another increase, immediate resistance on the upside is near the $0.1550 level and a connecting bearish trend line on the same chart. The first major resistance for the bulls could be near the $0.1565 level. The next major resistance is near the $0.160 level. A close above the $0.160 resistance might send the price toward $0.1680. Any more gains might send the price toward $0.1720. The next major stop for the bulls might be $0.1780.

Downside Break In DOGE?

If DOGE’s price fails to climb above the $0.1550 level, it could start a downside correction. Initial support on the downside is near the $0.1490 level and the trend line. The next major support is near the $0.1450 level and the 50% Fib retracement level of the upward move from the $0.1330 swing low to the $0.1565 high.

The main support sits at $0.1420. If there is a downside break below the $0.1420 support, the price could decline further. In the stated case, the price might slide toward the $0.1330 level or even $0.130 in the near term.

Technical Indicators

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

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

Major Support Levels – $0.1490 and $0.1420.

Major Resistance Levels – $0.1550 and $0.1565.