Dogecoin (DOGE) Tries To Bounce – But Resistance Barrier Keeps Rally In Check

[Ben Graham]

Dogecoin started a fresh decline below the $0.2550 zone against the US Dollar. DOGE is now correcting some losses and might face hurdles near $0.2550.

• DOGE price started a fresh decline below the $0.250 level.
• The price is trading below the $0.2540 level and the 100-hourly simple moving average.
• There is a bearish trend line forming with resistance at $0.2540 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could extend losses if it stays below $0.2550 and $0.260.

Dogecoin Price Attempts Recovery

Dogecoin price started a fresh decline after it closed below $0.260, like Bitcoin and Ethereum. DOGE declined below the $0.2550 and $0.2540 support levels.

The price even traded below $0.2420. A low was formed near $0.2413, and the price recently attempted a recovery wave. There was a move above the 50% Fib retracement level of the downward move from the $0.2609 swing high to the $0.213 low.

However, the bears were active near the $0.2550 resistance and the Fib retracement level of the downward move from the $0.2609 swing high to the $0.213 low. Besides, there is a bearish trend line forming with resistance at $0.2540 on the hourly chart of the DOGE/USD pair.

Dogecoin price is now trading below the $0.2550 level and the 100-hourly simple moving average. If there is a recovery wave, immediate resistance on the upside is near the $0.2540 level. The first major resistance for the bulls could be near the $0.2550 level.

The next major resistance is near the $0.260 level. A close above the $0.260 resistance might send the price toward the $0.2780 resistance. Any more gains might send the price toward the $0.2840 level. The next major stop for the bulls might be $0.2920.

More Losses In DOGE?

If DOGE’s price fails to climb above the $0.2540 level, it could continue to move down. Initial support on the downside is near the $0.2475 level. The next major support is near the $0.240 level.

The main support sits at $0.2320. If there is a downside break below the $0.2320 support, the price could decline further. In the stated case, the price might slide toward the $0.2120 level or even $0.2050 in the near term.

Technical Indicators

Hourly MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.

Major Support Levels – $0.2475 and $0.2400.

Major Resistance Levels – $0.2540 and $0.2600.