The recent movement in Dogecoin’s price saw a correction in gains as it tested the $0.1620 zone against the US Dollar. Despite forming a base, DOGE faced resistance near $0.1750, resulting in a downside correction similar to Bitcoin and Ethereum. This correction led to a drop below the $0.1650 support zone, with a low forming at $0.1620. Currently, Dogecoin is consolidating for its next move, 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 from data sourced from Kraken. The price must settle above $0.170 to move into a positive zone and potentially start a fresh surge. On the upside, the price is facing resistance near the $0.1664 level, with the next major resistance at $0.1685. However, failure to gain pace above $0.1685 could result in another decline, with initial support near $0.1620 and major support at $0.1550.
The MACD for DOGE/USD is now losing momentum in the bearish zone, while the RSI is below the 50 level. Major support levels include $0.1620, $0.1550, and $0.1520, while major resistance levels are at $0.1660, $0.1685, and $0.1720. The price movement in Dogecoin is currently at a critical juncture, with both bullish and bearish indicators playing a role in determining its future trajectory.
If Dogecoin manages to break above the $0.1685 resistance, it could rally towards $0.1725 and potentially reach $0.1750. However, a failure to break above this level might result in a decline towards $0.1550 and even further towards $0.1520. The next few trading sessions will be crucial in determining whether Dogecoin can sustain its recent gains or face a more significant correction. Traders and investors will need to closely monitor the price movement and key resistance levels to make informed decisions regarding their positions in Dogecoin.
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