Dogecoin corrected gains and tested the $0.1620 zone against the US Dollar. DOGE is now forming a base and might start a fresh increase above $0.1680.
- DOGE price declined and tested the key support at $0.1620.
- The price is trading below the $0.1650 level and the 100-hourly simple moving average.
- There is a key bearish trend line forming with resistance at $0.1685 on the hourly chart of the DOGE/USD pair (data source from Kraken).
- The price must settle above $0.170 to move into a positive zone and start a fresh surge.
Dogecoin Price Holds Support
After a steady increase, Dogecoin price faced resistance near the $0.1750 zone. The recent swing high was formed at $0.1705 before DOGE started a downside correction like Bitcoin and Ethereum. There was a drop below the $0.1650 support zone.
A low was formed at $0.1620 and DOGE is now consolidating for the next move. Dogecoin is now trading below the $0.1650 level and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $0.1664 level. It is near the 50% Fib retracement level of the downward move from the $0.1705 swing high to the $0.1620 low.
The next major resistance is near the $0.1685 level or the 76.4% Fib retracement level of the downward move from the $0.1705 swing high to the $0.1620 low. There is also a key bearish trend line forming with resistance at $0.1685 on the hourly chart of the DOGE/USD pair.
Source: DOGEUSD on TradingView.com
A close above the $0.1685 resistance might send the price toward the $0.1725 resistance. Any more gains might send the price toward the $0.1750 level. The next major stop for the bulls might be $0.1800.
More Losses In DOGE?
If DOGE’s price fails to gain pace above the $0.1685 level, it could start another decline. Initial support on the downside is near the $0.1620 level.
The next major support is near the $0.1550 level. If there is a downside break below the $0.1550 support, the price could decline further. In the stated case, the price might decline toward the $0.1520 level.
Technical Indicators
Hourly MACD – The MACD for DOGE/USD is now losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.
Major Support Levels – $0.1620, $0.1550 and $0.1520.
Major Resistance Levels – $0.1660, $0.1685, and $0.1720.
