Dogecoin (DOGE) Dips: Warning Sign or Hidden Opportunity?


Dogecoin started a new low below the $0.350 area against the US Dollar. DOGE is now consolidating and may recover if it clears the $0.3350 resistance.

  • DOGE price started a new low below $0.3550 and $0.350.
  • The price is trading below the $0.350 level and the 100-hour simple moving average.
  • There is a connecting bearish trend line forming resistance at $0.3350 on the hourly chart of the DOGE/USD pair (data source from Kraken).
  • The price may gain momentum if it clears the resistance levels of $0.3350 and $0.3420.

Table of Contents

Dogecoin Price Turns Red

The price of Dogecoin started to fall again after it failed to surpass $0.40, like Bitcoin and Ethereum. DOGE declined below the $0.3650 and $0.350 support levels to enter a temporary bearish zone.

There was a move below the $0.3250 support. A low was formed at $0.3143 and the price is now attempting a recovery wave. There was a move above the $0.3250 resistance but the price is still below the 23.6% Fib retracement level of the move down from the $0.3981 swing high to the $0.3143 low.

Dogecoin price is now trading below the $0,340 level and the 100-hour simple moving average. The immediate resistance on the upside is near the $0.3350 level. There is also a bearish connecting trend line forming with resistance at $0.3350 on the DOGE/USD hourly chart.

The first major resistance for the bulls could be near the $0.340 level. The next major resistance is near the $0.350 level or the 50% Fib retracement level to the downside from the $0.3981 swing high to the $0.3143 low.

A close above the $0.350 resistance could send the price to the $0.3620 resistance. Any further gains could send the price to the $0.380 level. The next big stop for the bulls would be $0.40.

Another Refusal to DOGE?

If the price of DOGE fails to rise above the $0.3350 level, it may start another decline. The first support on the downside is near the $0.320 level. The next major support is near the $0.3150 level.

Key support remains at $0.30. If there is a break below the $0.30 support, the price may go down further. In the mentioned scenario, the price may drop to the level of $0.2850 or $0.2720 in the near term.

Technical References

Hourly MACD – The DOGE/USD MACD is now gaining momentum in bearish territory.

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

Major Support Levels – $0.320 and $0.3150.

Major Resistance Levels – $0.3350 and $0.3400.



Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top