Dogecoin (DOGE) Bears Dominate — Price Action Suggests More Downside Ahead

[Ben Graham]

Dogecoin struggled to rise above $0.2180 and corrected some gains against the US Dollar. DOGE is now consolidating and might decline below $0.1920.

• DOGE price started a fresh downside correction below $0.2050.
• The price is trading below the $0.240 level and the 100-hourly simple moving average.
• There is a bearish trend line forming with resistance at $0.2025 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could aim for a fresh increase if it remains stable above $0.1880.

Dogecoin Price Dips Again

Dogecoin price started a fresh increase after it settled above $0.20, like Bitcoin and Ethereum. DOGE climbed above the $0.2050 resistance to enter a positive zone.

The bulls were able to push the price above $0.2120 and $0.2150. A high was formed at $0.2182 and the price is now correcting gains. There was a move below the 50% Fib retracement level of the upward move from the $0.1788 swing low to the $0.2182 high.

Dogecoin price is now trading below the $0.2050 level and the 100-hourly simple moving average. Besides, there is a bearish trend line forming with resistance at $0.2025 on the hourly chart of the DOGE/USD pair.

If there is another increase, immediate resistance on the upside is near the $0.2025 level. The first major resistance for the bulls could be near the $0.2085 level. The next major resistance is near the $0.2120 level. A close above the $0.2120 resistance might send the price toward $0.2180. Any more gains might send the price toward $0.2250. The next major stop for the bulls might be $0.2320.

More Losses In DOGE?

If DOGE’s price fails to climb above the $0.2085 level, it could start a downside correction. Initial support on the downside is near the $0.1930 level and the 61.8% Fib retracement level of the upward move from the $0.1788 swing low to the $0.2182 high. The next major support is near the $0.1880 level.

The main support sits at $0.1800. If there is a downside break below the $0.1800 support, the price could decline further. In the stated case, the price might slide toward the $0.1665 level or even $0.1650 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 – $0.1930 and $0.1880.

Major Resistance Levels – $0.2085 and $0.2180.