Dogecoin (DOGE) Rally on Hold: Can Momentum Kick Back In?
Dogecoin/USD exchange rate started a downward correction below the $0.400 support level. DOGE is currently consolidating and may target another move above $0.4050.
- DOGE price started a new round of decline, falling below $0.40.
- The price is trading below the $0.4050 level and the 100 hourly simple moving average.
- A bullish trend line is forming with support at $0.3950 on the hourly chart of the DOGE/USD pair (data source from Kraken).
- If the price breaks the $0.4050 and $0.4150 resistance levels, another upward leg may start.
Dogecoin price ushered in a new round of rise
Dogecoin price begins a new round of decline from well above $0.410, with Bitcoin and Ethereum. DOGE is trading below the $0.4020 and $0.400 support levels. It even surged below $0.3980.
A low was formed at $0.3963 and the price is now consolidating losses. It recovered some points and climbed above $0.40. It exceeded the 23.6% Fib retracement level of the downward move from the swing high of $0.4136 to low of $0.3963.
Dogecoin price is currently trading below the $0.4050 level and the 100 hourly simple moving average. There is also a bullish trend line forming with support at $0.3950 on the hourly chart of the DOGE/USD pair.
Immediate resistance on the upside lies near $0.4025. The first major resistance level for bulls is likely to be near $0.4050. The next major resistance is near $0.4095, the 76.4% Fib retracement level of the downward move from the $0.4136 swing high to $0.3963 low.
A close above the $0.4095 resistance may push the price towards the $0.4150 resistance. Any more gains may push the price towards $0.4350 levels. The next major stop for the bulls is likely to be $0.4500.
DOGE Suffers More Losses?
If the price of DOGE fails to climb above $0.4050, another decline could begin. Initial support on the downside is near $0.3980. The next major support is near $0.3950.
The main support level is $0.3750. If it breaks below the $0.3750 support, the price may decline further. In the above scenario, the price may drop towards $0.350 or even $0.3420 levels in the short term.
Technical indicators
Hourly MACD – The MACD for DOGE/USD is currently losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is currently below the 50 level.
The main support levels – $0.3980 and $0.3750.
The main resistance levels – $0.4050 and $0.4095.
