Dogecoin (DOGE) Encounters Resistance; Recovery Momentum Begins to Wane

Dogecoin has started a recovery above the $0.1420 mark against the U.S. Dollar. However, DOGE is encountering resistance around $0.1540 and may find it challenging to maintain its upward trajectory.

Key Takeaways

Upward Movement: DOGE saw an increase above the $0.140 and $0.1420 levels.
Current Trading Status: Prices are now above the $0.1450 threshold and the 100-hour simple moving average.
Resistance Levels: A bearish trend line has formed with resistance at $0.1530 on the hourly DOGE/USD chart (data from Kraken).
Potential Decline: The price could continue to drop if it remains below the $0.1530 and $0.1540 resistance levels.

Dogecoin (DOGE) Trims Gains

Dogecoin Price Meets Resistance

Dogecoin price has initiated a recovery from the $0.1330 range, similar to the movements seen in Bitcoin and Ethereum. DOGE successfully rose above both the $0.1320 and $0.140 resistance levels.

The price movement also surpassed the 50% Fibonacci retracement level, recovering from the recent decline between $0.1593 and $0.1330. However, selling pressure appears to be strong near the $0.1530 and $0.1540 levels. Additionally, a bearish trend line, which indicates resistance at $0.1530, is becoming evident on the hourly chart for the DOGE/USD pair.

Currently, Dogecoin is trading above the $0.150 mark and remains above the 100-hourly simple moving average. Should there be a surge in recovery, the first resistance to watch for is around $0.1530, while a significant barrier for bullish traders could be situated near $0.1540, along with the trend line and the 76.4% Fibonacci retracement level from the previous decline.

Dogecoin Price Source: DOGEUSD on TradingView.com

The next notable resistance is found near $0.1590. If prices manage to close above this level, we could see an increase toward $0.1650. Continued gains may propel prices toward the $0.1720 level, with an ultimate target for bulls around the $0.180 resistance mark.

Is Another Decline Imminent for DOGE?

If Dogecoin fails to break through the $0.1540 resistance, it may continue to trend downward. Initial support on the downside is situated around $0.1460, with a more critical support level at $0.1420.

The primary support to monitor is at $0.1330. Should the price drop below this key support level, it may lead to further declines, potentially reaching $0.120 or even $0.1120 in the short run.

Technical Indicators

Hourly MACD: The MACD for DOGE/USD is currently losing momentum despite being in the bullish zone.
Hourly RSI: The RSI for DOGE/USD is currently above the 50 mark.
Major Support Levels: $0.1460 and $0.1420.
Major Resistance Levels: $0.1540 and $0.1590.