Dogecoin (DOGE) Slips Into Red Zone, Is a Bigger Crash Looming?

[Ben Graham]

Dogecoin started a fresh decline below the $0.2320 zone against the US Dollar. DOGE is now consolidating and might dip further below $0.210.

• DOGE price started a fresh decline below the $0.2250 level.
• The price is trading below the $0.2250 level and the 100-hourly simple moving average.
• There is a bearish trend line forming with resistance at $0.220 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could start a fresh upward move if it stays above the $0.2080 zone.

Dogecoin Price Dips Further

Dogecoin price started a fresh decline after there was a close below $0.240, like Bitcoin and Ethereum. DOGE declined below the $0.2320 and $0.2250 support levels.

The price even traded below $0.2120. A low was formed at $0.2078 and the price is now consolidating losses. There was a minor recovery wave above the 23.6% Fib retracement level of the recent decline from the $0.2430 swing high to the $0.2078 low.

Dogecoin price is now trading below the $0.2250 level and the 100-hourly simple moving average. If there is a recovery wave, immediate resistance on the upside is near the $0.220 level. There is also a bearish trend line forming with resistance at $0.220 on the hourly chart of the DOGE/USD pair.

The first major resistance for the bulls could be near the $0.2250 level. It is close to the 50% Fib retracement level of the recent decline from the $0.2430 swing high to the $0.2078 low.

The next major resistance is near the $0.2320 level. A close above the $0.2320 resistance might send the price toward the $0.2450 resistance. Any more gains might send the price toward the $0.250 level. The next major stop for the bulls might be $0.2550.

Another Decline In DOGE?

If DOGE’s price fails to climb above the $0.2250 level, it could continue to move down. Initial support on the downside is near the $0.2120 level. The next major support is near the $0.2080 level.

The main support sits at $0.2050. If there is a downside break below the $0.2050 support, the price could decline further. In the stated case, the price might decline toward the $0.20 level or even $0.1920 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 – $0.2120 and $0.2050.

Major Resistance Levels – $0.2250 and $0.2320.