Dogecoin (DOGE) Sinks Further Into Red as Momentum Turns Sharply Bearish

[Ben Graham]

Dogecoin started a fresh decline below the $0.1250 zone against the US Dollar. DOGE is now consolidating losses and might face hurdles near $0.1235.

• DOGE price started a fresh decline below the $0.1250 level.
• The price is trading below the $0.1220 level and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $0.1300 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could extend losses if it stays below $0.1280 and $0.1300.

Dogecoin Price Dips Further

Dogecoin price started a fresh decline after it closed below $0.1300, like Bitcoin and Ethereum. DOGE declined below the $0.1280 and $0.1250 support levels.

The price even traded below $0.1220. A low was formed near $0.1198, and the price is now showing bearish signs. It is consolidating below the 23.6% Fib retracement level of the downward move from the $0.1305 swing high to the $0.1198 low.

Dogecoin price is now trading below the $0.1280 level and the 100-hourly simple moving average. If there is a recovery wave, immediate resistance on the upside is near the $0.1235 level. The first major resistance for the bulls could be near the $0.1280 level or the 76.4% Fib retracement level of the downward move from the $0.1305 swing high to the $0.1198 low.

The next major resistance is near the $0.1300 level. There is also a key bearish trend line forming with resistance at $0.1300 on the hourly chart of the DOGE/USD pair. A close above the $0.1300 resistance might send the price toward the $0.1350 resistance. Any more gains might send the price toward the $0.1372 level. The next major stop for the bulls might be $0.1400.

More Losses In DOGE?

If DOGE’s price fails to climb above the $0.1300 level, it could continue to move down. Initial support on the downside is near the $0.1200 level. The next major support is near the $0.1195 level.

The main support sits at $0.1150. If there is a downside break below the $0.1150 support, the price could decline further. In the stated case, the price might slide toward the $0.1050 level or even $0.10 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 above the 50 level.

Major Support Levels – $0.1280 and $0.1250.

Major Resistance Levels – $0.1340 and $0.1350.