Dogecoin (DOGE) Attempts a Comeback: Can It Clear Resistance?
Dogecoin started a recovery wave above the $0.240 zone against the US Dollar. DOGE is now consolidating and might face hurdles near $0.270.
- DOGE price started a recovery wave above the $0.2350 and $0.2420 levels.
- The price is trading below the $0.2780 level and the 100-hourly simple moving average.
- There is a major bearish trend line forming with resistance at $0.260 on the hourly chart of the DOGE/USD pair (data source from Kraken).
- The price could start another increase if it clears the $0.260 and $0.270 resistance levels.
Dogecoin Price Faces Resistance
Dogecoin price started a fresh decline from the $0.3450 resistance zone, like Bitcoin and Ethereum . DOGE dipped below the $0.300 and $0.250 support levels. It even spiked below $0.220.
The price declined over 25% and tested the $0.20 zone. A low was formed at $0.20 and the price is now rising. There was a move above the 50% Fib retracement level of the downward wave from the $0.3415 swing high to the $0.20 low.
However, the bears are active near the $0.280 zone. Dogecoin price is now trading below the $0.270 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.260 level.
There is also a major bearish trend line forming with resistance at $0.260 on the hourly chart of the DOGE/USD pair. The first major resistance for the bulls could be near the $0.270 level. The next major resistance is near the $0.2850 level or the 61.8% Fib retracement level of the downward wave from the $0.3415 swing high to the $0.20 low.
A close above the $0.2850 resistance might send the price toward the $0.300 resistance. Any more gains might send the price toward the $0.320 level. The next major stop for the bulls might be $0.3420.
Another Decline In DOGE?
If DOGE’s price fails to climb above the $0.270 level, it could start another decline. Initial support on the downside is near the $0.2420 level. The next major support is near the $0.2250 level.
The main support sits at $0.220. If there is a downside break below the $0.220 support, the price could decline further. In the stated case, the price might decline toward the $0.2020 level or even $0.200 in the near term.
Technical Indicators
Hourly MACD – The MACD for DOGE/USD is now losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.
Major Support Levels – $0.2420 and $0.2250.
Major Resistance Levels – $0.2700 and $0.2850.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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