Dogecoin (DOGE) Faces Challenges Ahead After Recent Decline

Dogecoin has recently experienced a decline below the $0.1280 level against the US Dollar. Currently, DOGE is consolidating its losses and may encounter obstacles around the $0.130 mark.

Key Takeaways

Dogecoin (DOGE) has moved below the $0.120 level.
It is currently trading beneath both the $0.1280 mark and the 100-hourly simple moving average.
A bearish trend line is emerging, indicating resistance at $0.130 on the hourly DOGE/USD chart (data from Kraken).
The price may continue to decline if it stays below $0.1300 and $0.1320.

Dogecoin (DOGE) Faces Challenges Ahead

Dogecoin Price Sees a Significant Drop

Dogecoin has initiated a downward trend after dropping below the $0.1320 mark, following a similar trend seen with Bitcoin and Ethereum. The price has fallen below support levels of $0.1280 and $0.1220, even dipping beneath $0.1180. A low point was reached at approximately $0.1155, showing bearish trends for DOGE.

There was a slight recovery above $0.120, with the price surpassing the 23.6% Fibonacci retracement level of the downward move from the swing high of $0.1512 to the low of $0.1155. As it stands, Dogecoin is trading below both the $0.1280 level and the 100-hourly simple moving average. If a recovery occurs, immediate resistance will be located near the $0.1280 level.

The first significant resistance point for bullish traders may emerge around the $0.130 mark and the trend line. The next notable resistance will be near the $0.1330 level or at the 50% Fibonacci retracement level of the previous decline from $0.1512 to $0.1155.

Dogecoin Price Trends
Source: DOGEUSD on TradingView.com

If the price manages to close above the $0.1330 resistance, it could push towards the $0.1375 level. A sustained upward movement could lead the price toward the $0.140 mark, with $0.1420 potentially serving as the next major target for bullish momentum.

Is Another Decline Inevitable for DOGE?

Should Dogecoin's price fail to rise above the $0.1300 mark, it could continue its downward trajectory. Initial support lies around the $0.1215 level, with further significant support near the $0.120 mark.

The primary support remains at $0.1150. If the price breaks below this critical support level, it could lead to further declines, possibly targeting $0.1120 or even $0.1050 in the near future.

Technical Analysis

Hourly MACD: The MACD for DOGE/USD is currently losing momentum in the bearish range.
Hourly RSI (Relative Strength Index): The RSI for DOGE/USD is presently below the 50 mark.
Major Support Levels: $0.1215 and $0.1200.
Major Resistance Levels: $0.1300 and $0.1330.