Dogecoin started a sharp downside correction below the $0.400 support against the US Dollar. DOGE is trading near the $0.3750 support and might bounce back.
DOGE price started a fresh decline below the $0.420 level.
The price is trading below the $0.40 level and the 100-hourly simple moving average.
There is a connecting bearish trend line forming with resistance at $0.4260 on the hourly chart of the DOGE/USD pair (data source from Kraken).
The price could start another rally if it clears the $0.420 and $0.4250 resistance levels.
Dogecoin Price Dips To Support
Dogecoin price started a fresh decline from well above $0.440 like Bitcoin and Ethereum. DOGE traded below the $0.4120 and $0.400 support levels. It even spiked below $0.3880.
A low was formed at $0.3749 and the price is now consolidating losses. It recovered some points and climbed above $0.3850. It tested the 23.6% Fib retracement level of the downward move from the $0.4777 swing high to the $0.3749 low.
Dogecoin price is now trading below the $0.4250 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.4080 level. The first major resistance for the bulls could be near the $0.4250 level.
There is also a connecting bearish trend line forming with resistance at $0.4260 on the hourly chart of the DOGE/USD pair. It is close to the 50% Fib retracement level of the downward move from the $0.4777 swing high to the $0.3749 low.
The next major resistance is near the $0.4550 level. A close above the $0.4550 resistance might send the price toward the $0.4650 resistance. Any more gains might send the price toward the $0.5000 level. The next major stop for the bulls might be $0.5200.
More Losses In DOGE?
If DOGE’s price fails to climb above the $0.4250 level, it could start another decline. Initial support on the downside is near the $0.3880 level. The next major support is near the $0.3750 level.
The main support sits at $0.3650. If there is a downside break below the $0.3650 support, the price could decline further. In the stated case, the price might decline toward the $0.3420 level or even $0.3250 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 – $0.3880 and $0.3750.
Major Resistance Levels – $0.4080 and $0.4250.
