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Dogecoin (DOGE) Eyes Upside After Crash, Yet Resistance Levels Cap Momentum
Dogecoin initiated a new downturn from the $0.1720 mark against the US Dollar, with the DOGE price now consolidating losses and potentially recovering if it surpasses the $0.1580 threshold. The cryptocurrency witnessed a substantial pullback falling beneath both the $0.170 and $0.160 levels. Currently, DOGE is trading under the $0.160 mark and below the 100-hourly simple moving average, signaling continued bearish pressure.
In a promising turn, Dogecoin managed to breach a bearish trend line with resistance near $0.1510 on the hourly chart of the DOGE/USD pair (data sourced from Kraken). However, if it remains under the $0.1580 zone, we might see a fresh decline.
Dogecoin Price Faces Stiff Resistance
After failing to clear the $0.1720 resistance zone, Dogecoin underperformed compared to its peers, Bitcoin and Ethereum. The price dropped below crucial levels at $0.1600 and $0.1580. Bears further pushed DOGE below the $0.1450 level, establishing a low at $0.1427. The cryptocurrency is now attempting a comeback, having moved above the 23.6% Fibonacci retracement level of the recent drop from the $0.1718 high to the $0.1427 low.
Despite these minor gains, Dogecoin is still trading below the critical $0.1580 level and the 100-hourly SMA. Immediate resistance is found near $0.1550, with a more significant barrier at $0.1580, near the 50% Fib retracement of the same downward trajectory. A close above the $0.1610 resistance could potentially propel DOGE towards the $0.1720 mark again. Further gains could target the $0.200 level, with the next substantial bull stop possibly at $0.2120.
Potential for Another Drop in DOGE
Should Dogecoin fail to ascend beyond the $0.1580 mark, another decline could be imminent. Initial support is positioned near the $0.1480 level, followed by significant support at $0.1440. The primary support lies at $0.1420. A break below this base could intensify losses, potentially driving the price towards the $0.1350 level or even lower to $0.1280 in the near term.
Technical Indicators Signal Caution
The hourly MACD for DOGE/USD is losing momentum in the bearish zone, which could indicate weakening seller strength, yet caution remains advised. The Relative Strength Index (RSI) for DOGE/USD is now just above the 50 level, suggesting a potential for either direction depending on market sentiments and upcoming trading volumes.
Major Support Levels: $0.1440 and $0.1420.
Major Resistance Levels: $0.1580 and $0.1610.
As Dogecoin navigates this turbulent phase, investors and traders should watch these key levels and indicators closely to gauge the next significant move.
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