Dogecoin (DOGE) Faces Decline, Resistance Levels May Limit Recovery

Dogecoin has experienced a significant drop, falling below the $0.1320 mark against the US Dollar. Currently, DOGE is consolidating its losses and may encounter barriers near the $0.1350 resistance level.

Key Takeaways

Dogecoin (DOGE) is in a downward trend, trading below the critical levels of $0.1300 and $0.1250.
A bearish trend line indicates resistance at around $0.1350 on the hourly DOGE/USD chart.
The price may continue to decline if it remains below the $0.1300 and $0.1350 levels, with supports at $0.1250 and $0.120.

Dogecoin (DOGE) Drops Over 5%

The Decline of Dogecoin Price

Dogecoin has started a new decline, dropping below $0.1350, following a similar trend seen in Bitcoin and Ethereum. The price has moved below the critical support levels of $0.1300 and $0.1250.

A significant low was recorded at about $0.1154. Following this, there was a slight recovery above $0.1220, as the price surpassed the 23.6% Fibonacci retracement level from the decline between the $0.1512 swing high and the $0.1154 low.

Currently, Dogecoin is trading under $0.130 and the 100-hourly simple moving average. If a recovery occurs, immediate resistance is expected around the $0.130 level.

The first major resistance level for bullish momentum is near $0.1330, aligning with the 50% Fibonacci retracement level from the previous downward move. A significant resistance area is also noted at $0.1350 along the bearish trend line.

Dogecoin Price Source: DOGEUSD on TradingView.com

If the price closes above the $0.1350 resistance, it might climb towards the $0.1380 level, with further gains potentially reaching $0.140 or even $0.1420 for bullish traders.

Is a Further Decline Inevitable for DOGE?

Should the Dogecoin price fail to rise above the $0.1300 mark, the downward trend could persist. The initial support is identified near $0.1250, followed by a crucial support level at $0.1220. The primary support remains at $0.120.

If the price falls below the $0.120 level, a deeper decline could ensue, potentially bringing the price down to the $0.1150 level or even to $0.1135 in the near term.

Technical Indicators Overview

Hourly MACD: The MACD for DOGE/USD is showing a reduction in bearish momentum.
Hourly RSI (Relative Strength Index): The RSI for DOGE/USD currently indicates levels below 50.
Major Support Levels: Set at $0.1250 and $0.1220.
Major Resistance Levels: Identified at $0.1300 and $0.1350.