Dogecoin pared some of its gains and was trading below $0.1050 against the US dollar. DOGE currently holds support at $0.10 and could aim for a new rally.
DOGE price has started a new downward correction below $0.1120. The price is trading below the $0.1050 level and the 100 hourly simple moving average. On the hourly chart of the DOGE/USD pair, a downtrend has formed with resistance at $0.1020 (data source: Kraken). If the price stabilizes above $0.10, it could head for another rally.
Dogecoin price faces resistance
Dogecoin price started a downward correction after failing to sustain above $0.1150, similar to Bitcoin and Ethereum. DOGE fell below the $0.1100 and $0.1080 levels.
There was a move below the 50% Fib retracement level of the upward movement from the swing low of $0.0878 to the high of $0.1175. The price soared to below $0.10 before the bulls emerged. The price has now formed a base above $0.10 and is preparing for the next move.
On the hourly chart of the DOGE/USD pair, there is also a descending channel with resistance forming at $0.1020. Dogecoin price is currently trading below the $0.1050 level and the 100-hour simple moving average. For now, the upside resistance is near the $0.1020 level. The first major resistance for the bulls could be around $0.1070.
The next major resistance level is near the $0.1120 level. If the closing price breaks above the $0.1120 resistance, the price could head toward $0.1150. Further upside could send the price towards $0.1180. The next major stop for the bulls could be at $0.120.
Another decline in DOGE?
If DOGE price fails to break above the $0.1020 level, the decline may continue. The first support on the downside is around the $0.10 level.
The next major support is near the $0.0945 level, or the 76.4% Fib retracement level rising from the swing low of $0.0878 to the high of $0.1175. The main support lies at $0.0920. A downside break below the support at $0.0920 could cause the price to fall further. In the above case, the price may fall towards the $0.0875 level and even $0.0865 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 above the 50 level.
Major support levels – $0.1000 and $0.0945.
Key resistance levels – $0.1020 and $0.1070.
