Dogecoin (DOGE) Weakly trapped, bears still in charge

[Ben Graham]

Dogecoin started a recovery wave above the $0.0950 zone against the US Dollar. DOGE is now facing hurdles near $0.10 and might struggle to continue higher.

• DOGE price started a recovery wave from $0.090 and climbed above $0.0950.
• The price is trading below the $0.0960 level and the 100-hourly simple moving average.
• There is a key declining channel forming with support at $0.090 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could continue to move up if it stays above $0.090.

Dogecoin Price Hits Resistance

Dogecoin price started a recovery wave from the $0.080 zone, like Bitcoin and Ethereum. DOGE climbed above the $0.0850 and $0.090 resistance levels.

There was a decent upward move above the 50% Fib retracement level of the downward move from the $0.1100 swing high to the $0.0800 low. However, the bears remained active near the $0.100 zone. Besides, there is a key declining channel forming with support at $0.090 on the hourly chart of the DOGE/USD pair.

Dogecoin price is now trading below the $0.0960 level and the 100-hourly simple moving average. If there is another recovery wave, immediate resistance on the upside is near the $0.0985 level or the 61.8% Fib retracement level of the downward move from the $0.1100 swing high to the $0.0800 low.

The first major resistance for the bulls could be near the $0.10 level. The next major resistance is near the $0.1020 level. A close above the $0.1020 resistance might send the price toward the $0.1085 resistance. Any more gains might send the price toward the $0.1120 level. The next major stop for the bulls might be $0.1150.

Another Decline In DOGE?

If DOGE’s price fails to climb above the $0.10 level, it could continue to move down. Initial support on the downside is near the $0.09240 level. The next major support is near the $0.090 level.

The main support sits at $0.0850. If there is a downside break below the $0.0850 support, the price could decline further. In the stated case, the price might slide toward the $0.0820 level or even $0.0800 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 – $0.0924 and $0.0900.

Major Resistance Levels – $0.0985 and $0.1020.