Dogecoin, the popular meme-inspired cryptocurrency, is facing a period of consolidation with potential for further downside correction. After a brief struggle to surpass the $0.2180 mark and a subsequent retrace of earlier gains against the US Dollar, DOGE's price action suggests a challenging path ahead for bulls, as it currently trades below critical resistance levels.
Recent Price Action and Uphill Battle for Bulls
Following a positive surge that saw Dogecoin settle above $0.20, mirroring movements in Bitcoin and Ethereum, the cryptocurrency managed to break past the $0.2050 resistance, even touching a high of $0.2182. However, this momentum proved short-lived, with the price now undergoing a correction. Currently, DOGE is trading beneath the $0.2050 level and its 100-hourly simple moving average. A bearish trend line has also emerged on the hourly chart, presenting significant resistance around $0.2025. For Dogecoin to regain an upward trajectory, it would need to first overcome immediate resistance at $0.2025, followed by $0.2085, and subsequently $0.2120, a breach of which could pave the way towards $0.2180 and potentially $0.2250 or even $0.2320.
Downside Risks and Critical Support Levels
The immediate concern for Dogecoin investors lies in its inability to firmly establish itself above the $0.2085 level. A failure to do so could trigger a more pronounced downside correction. Initial support is identified near $0.1930, coinciding with the 61.8% Fibonacci retracement level of the recent upward move from the $0.1788 swing low to the $0.2182 high. The next crucial support zone is around $0.1880, with the main line of defense at $0.1800. Should DOGE's price break decisively below $0.1800, it risks further declines towards $0.1665 or even $0.1650 in the near term.
Technical Indicators
- Hourly MACD: The Moving Average Convergence Divergence for DOGE/USD is showing increasing momentum within the bearish zone, indicating prevailing selling pressure.
- Hourly RSI: The Relative Strength Index for DOGE/USD is currently below the 50 level, suggesting a weakening bullish sentiment and potential for further price depreciation. Major Support Levels: $0.1930 and $0.1880 Major Resistance Levels: $0.2085 and $0.2180
