Dogecoin started a downside correction from the $0.1050 zone against the US Dollar. DOGE is now holding major support at $0.080 and might start a fresh increase.
- DOGE started a downside correction below the $0.090 support against the US dollar.
- The price is trading above the $0.080 zone and the 100 simple moving average (4 hours).
- There is a key bearish trend line forming with resistance near $0.084 on the 4-hours chart of the DOGE/USD pair (data source from Kraken).
- The pair could start a fresh increase if there is a clear move above $0.0840.
Dogecoin Price Revisits 100 SMA
After a major rally, Dogecoin’s price struggled to clear the $0.1050 resistance. DOGE started a major decline and traded below the $0.0920 support, trimming gains versus Bitcoin and Ethereum.
There was a sharp decline below the $0.090 level and the price even tested the $0.080 support. A low is formed near $0.0803 and the price is now consolidating losses. It is trading above the $0.080 zone and the 100 simple moving average (4 hours).
On the upside, the price is facing resistance near the $0.0840 level. There is also a key bearish trend line forming with resistance near $0.084 on the 4-hours chart of the DOGE/USD pair.
The first major resistance is near the $0.0862 level. It is near the 23.6% Fib retracement level of the downward move from the $0.1051 swing high to the $0.0803 low. A clear move above the $0.0862 resistance might send the price toward the $0.090 resistance.
Source: DOGEUSD on TradingView.com
The next major resistance is near $0.0920 or the 50% Fib retracement level of the downward move from the $0.1051 swing high to the $0.0803 low. Any more gains might send the price toward the $0.095 level. A clear move above the $0.095 resistance could open the gates for an increase toward the $0.105 level.
More Losses in DOGE?
If DOGE’s price fails to gain pace above the $0.0862 level, it could continue to move down. Initial support on the downside is near the $0.080 level.
The next major support is near the $0.076 level. If there is a downside break below the $0.076 support, the price could decline further. In the stated case, the price might decline toward the $0.070 level.
Technical Indicators
4 Hours MACD – The MACD for DOGE/USD is now losing momentum in the bearish zone.
4 Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.
Major Support Levels – $0.080, $0.076, and $0.070.
Major Resistance Levels – $0.0840, $0.0862, and $0.092.