Dogecoin Battles for Key Support After Recent Pullback
Dogecoin (DOGE) has seen a recent correction in its price, retracing some of its earlier gains against the US Dollar. After failing to break above the $0.1175 mark, the popular meme coin dipped, prompting traders to closely watch the critical $0.10 support level to gauge its immediate future trajectory.
Recent Price Dynamics
DOGE initiated a downside correction from its $0.1175 peak, trading below key levels like $0.1120 and $0.1080. The decline also pushed the price below the 50% Fibonacci retracement level of its upward move from $0.0878 to $0.1175. While bears managed to push the price as low as $0.1040, Dogecoin is currently holding above the crucial $0.10 support and the 100-hourly simple moving average, indicating a potential stabilization point.
Crucial Support and Resistance Zones
A significant bullish trend line has formed on the hourly chart, offering robust support near the $0.10 level. Should DOGE manage to maintain stability above this threshold, a fresh upward move could be on the horizon. Immediate resistance is encountered near $0.1035, with the first major hurdle for bulls located around $0.1065. Overcoming these could open the path towards $0.1085, and potentially extending gains to $0.1120, $0.1150, and ultimately testing the major resistance at $0.1175. Conversely, if Dogecoin fails to sustain above $0.1060, further downward pressure is expected. Initial downside support rests at $0.10 and the aforementioned trend line. A breach below this could lead to the next major support at $0.0950, which aligns with the 76.4% Fibonacci retracement. The primary support for DOGE stands at $0.0928. A break below this would signal a significant bearish turn, potentially sending the price towards $0.0880 or even $0.0850 in the near term.
Technical Outlook
Current technical indicators reflect the uncertain market sentiment. The Hourly Moving Average Convergence Divergence (MACD) for DOGE/USD is showing signs of gaining bearish momentum, currently positioned in the bearish zone. Similarly, the Hourly Relative Strength Index (RSI) for DOGE/USD is trading below the 50 level, reinforcing the cautious outlook. The market remains at a critical juncture, with the $0.10 support acting as a pivotal point for Dogecoin's next move.
