Dogecoin (DOGE) has recently entered a bearish correction, with its price retreating after failing to overcome key resistance levels against the US Dollar. The popular meme coin is currently grappling with critical support thresholds, suggesting that further declines could be on the horizon if market sentiment doesn't shift soon.
Dogecoin's Recent Slide and Key Resistances
The Dogecoin price initiated a significant downside correction from the $0.1275 mark, mirroring broader market movements seen in cryptocurrencies like Bitcoin and Ethereum. This downturn pushed DOGE below the $0.1250 and $0.1245 levels, and crucially, it broke below a bullish trend line with support at $0.1245 on the hourly chart. Compounding its woes, the price also dipped beneath the 50% Fibonacci retracement level of its upward swing from $0.1175 to $0.1275. Currently, DOGE trades beneath the $0.1225 level and its 100-hourly simple moving average. Should bulls attempt a rebound, immediate resistance lies near $0.1235, followed by major resistance points at $0.1250 and $0.1275. A decisive close above $0.1275 could potentially pave the way for a recovery towards $0.1350, $0.1380, and possibly $0.1420.
Looming Downside Risks for Dogecoin
The immediate future for Dogecoin remains challenging. If the cryptocurrency fails to firmly climb back above the $0.1250 resistance, it faces a continued downward trajectory. Initial support is observed near the $0.120 level, which also coincides with the 76.4% Fibonacci retracement of its recent upward move. A more substantial support resides near $0.1192, with the primary line of defense for buyers positioned at $0.1150. A breach below this crucial $0.1150 support could trigger a sharper decline, potentially sending Dogecoin towards $0.1080 or even $0.1050 in the short term. Technical indicators underscore this bearish outlook, as the Hourly MACD is currently gaining momentum in the bearish zone, and the Relative Strength Index (RSI) remains below the 50-level, suggesting a lack of buying pressure.
