Dogecoin (DOGE) Rebound Stumbles, Opening Door To Another Selloff

[Ben Graham]

Dogecoin started a recovery wave above the $0.10 zone against the US Dollar. DOGE is now facing hurdles near $0.1065 and might struggle to continue higher.

• DOGE price started a recovery wave from $0.095 and climbed above $0.10.
• The price is trading below the $0.110 level and the 100-hourly simple moving average.
• There was a break above a bearish trend line with resistance at $0.1060 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could continue to move up if it stays above $0.10.

Dogecoin Price Runs Into Resistance

Dogecoin price started a recovery wave from the $0.0950 zone, beating Bitcoin and Ethereum. DOGE climbed above the $0.10 and $0.1050 resistance levels.

There was a decent upward move above the 23.6% Fib retracement level of the downward move from the $0.1185 swing high to the $0.0948 low. Besides, there was a break above a bearish trend line with resistance at $0.1060 on the hourly chart of the DOGE/USD pair.

However, the bears are active near the $0.1065 level and the 50% Fib retracement level of the downward move from the $0.1185 swing high to the $0.0948 low. Dogecoin price is now trading below the $0.1065 level and the 100-hourly simple moving average.

If there is another recovery wave, immediate resistance on the upside is near the $0.1060 level. The first major resistance for the bulls could be near the $0.1065 level. The next major resistance is near the $0.1120 level. A close above the $0.1120 resistance might send the price toward the $0.1185 resistance. Any more gains might send the price toward the $0.120 level. The next major stop for the bulls might be $0.1250.

Another Decline In DOGE?

If DOGE’s price fails to climb above the $0.1065 level, it could continue to move down. Initial support on the downside is near the $0.10 level. The next major support is near the $0.0980 level.

The main support sits at $0.0950. If there is a downside break below the $0.0950 support, the price could decline further. In the stated case, the price might slide toward the $0.0880 level or even $0.0850 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 below the 50 level.

Major Support Levels – $0.1000 and $0.0950.

Major Resistance Levels – $0.1065 and $0.1120.