Dogecoin (DOGE) Faces Resistance, Risks Another Selloff

Dogecoin has initiated a recovery above the $0.10 mark against the US Dollar. However, DOGE is encountering obstacles near the $0.1065 level and may find it challenging to move higher.

Key Takeaways

Dogecoin (DOGE) price has risen from $0.095 and surpassed the $0.10 mark.
Currently, the price is trading below the $0.110 level and the 100-hour simple moving average.
There was a successful break above a bearish trend line at $0.1060 as seen on the hourly chart of the DOGE/USD pair.
If DOGE can maintain its price above $0.10, it may continue its upward momentum.

Dogecoin (DOGE) Rebound Stumbles

Dogecoin Price Encounters Resistance

Dogecoin's price has initiated a recovery from the $0.0950 zone, outpacing Bitcoin and Ethereum in the process. The price has risen above both the $0.10 and $0.1050 resistance levels.

A significant upward trend emerged as it broke above the 23.6% Fibonacci retracement level, which is calculated from the downward move from a high of $0.1185 to a low of $0.0948. Additionally, a bearish trend line was breached at the $0.1060 mark on the hourly chart for the DOGE/USD pair.

However, sellers are becoming active near the $0.1065 level, coinciding with the 50% Fibonacci retracement of the drop from $0.1185 to $0.0948. Presently, Dogecoin is trading below both the $0.1065 level and the 100-hour simple moving average.

Dogecoin Price Source: DOGEUSD on TradingView.com

If another upward movement occurs, immediate resistance can be expected around the $0.1060 mark. The first critical resistance for the bulls could appear at $0.1065, with the next significant barrier at $0.1120. If the price closes above $0.1120, it could potentially target the $0.1185 resistance. Additional gains may push the price towards the next key level of $0.120, with a potential stopping point for bulls at $0.1250.

Potential for Another Decline in DOGE?

Should DOGE's price struggle to break above the $0.1065 level, it might continue to decline. The initial support on the downside lies at the $0.10 level, with major support located around $0.0980.

The primary support is situated at $0.0950. If the price falls below this key level, further declines could follow, potentially dragging the price down to $0.0880 or even $0.0850 in the short term.

Technical Indicators

Hourly MACD – The MACD for DOGE/USD is currently gaining traction in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD has slipped below the 50 mark.
Major Support Levels – $0.1000 and $0.0950.
Major Resistance Levels – $0.1065 and $0.1120.