Dogecoin (DOGE) Red Prints Return, Resistance Could Cap Any Recovery

[Ben Graham]

Dogecoin started a fresh decline below the $0.1320 zone against the US Dollar. DOGE is now consolidating losses and might face hurdles near $0.1350.

• DOGE price started a fresh decline below the $0.1250 level.
• The price is trading below the $0.130 level and the 100-hourly simple moving average.
• There is a connecting bearish trend line forming with resistance at $0.1350 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could extend losses if it stays below $0.1300 and $0.1350.

Dogecoin Price Dives Below Support

Dogecoin price started a fresh decline after it closed below $0.1350, like Bitcoin and Ethereum. DOGE declined below the $0.1300 and $0.1250 support levels.

The price even traded below $0.120. A low was formed near $0.1154, and the price is now showing bearish signs. There was a recovery wave above $0.1220. The price cleared the 23.6% Fib retracement level of the downward move from the $0.1512 swing high to the $0.1154 low.

Dogecoin price is now trading below the $0.130 level and the 100-hourly simple moving average. If there is a recovery wave, immediate resistance on the upside is near the $0.130 level.

The first major resistance for the bulls could be near the $0.1330 level or the 50% Fib retracement level of the downward move from the $0.1512 swing high to the $0.1154 low. The next major resistance is near the $0.1350 level and trend line.

A close above the $0.1350 resistance might send the price toward the $0.1380 resistance. Any more gains might send the price toward the $0.140 level. The next major stop for the bulls might be $0.1420.

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 $0.1250 level. The next major support is near the $0.1220 level.

The main support sits at $0.120. If there is a downside break below the $0.120 support, the price could decline further. In the stated case, the price might slide toward the $0.1150 level or even $0.1135 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.

Major Support Levels – $0.1250 and $0.1220.

Major Resistance Levels – $0.1300 and $0.1350.