Dogecoin (DOGE) Eyes Upside After Crash, Yet Resistance Levels Cap Momentum

[Ben Graham]

Dogecoin started a fresh decline from the $0.1720 zone against the US Dollar. DOGE is now consolidating losses and might recover if it clears $0.1580.

• DOGE price started a fresh decline below the $0.170 and $0.160 levels.
• The price is trading below the $0.160 level and the 100-hourly simple moving average.
• There was a break above a bearish trend line forming with resistance at $0.1510 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could start a fresh decline if it stays below the $0.1580 zone.

Dogecoin Price Faces Resistance

Dogecoin price started a fresh decline after it failed to clear the $0.1720 zone, underperforming Bitcoin and Ethereum. DOGE declined below the $0.1600 and $0.1580 levels.

The bears even pushed the price below the $0.1450 level. A low was formed at $0.1427 and the price is now attempting to recover. There was a minor move above the 23.6% Fib retracement level of the downward move from the $0.1718 swing high to the $0.1427 low.

Besides, there was a break above a bearish trend line forming with resistance at $0.1510 on the hourly chart of the DOGE/USD pair. Dogecoin price is now trading below the $0.1580 level and the 100-hourly simple moving average.

Immediate resistance on the upside is near the $0.1550 level. The first major resistance for the bulls could be near the $0.1580 level. It is close to the 50% Fib retracement level of the downward move from the $0.1718 swing high to the $0.1427 low.

The next major resistance is near the $0.1610 level. A close above the $0.1610 resistance might send the price toward the $0.1720 resistance. Any more gains might send the price toward the $0.200 level. The next major stop for the bulls might be $0.2120.

Another Decline In DOGE?

If DOGE’s price fails to climb above the $0.1580 level, it could start another decline. Initial support on the downside is near the $0.1480 level. The next major support is near the $0.1440 level.

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 decline toward the $0.1350 level or even $0.1280 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 above the 50 level.

Major Support Levels – $0.1440 and $0.1420.

Major Resistance Levels – $0.1580 and $0.1610.