Dogecoin started a downside correction below the USD 0.400 support against the US dollar. DOGE is now consolidating and could target another rise above $0.4050.
- DOGE price started a new decline below the USD 0.40 level.
- The price is trading below the USD 0.4050 level and the 100-hour simple moving average.
- A connecting bullish trendline is forming with support at $0.3950 on the hourly chart of the DOGE/USD pair (Kraken data source).
- The price could start a new rally if it crosses the USD 0.4050 and USD 0.4150 resistance levels.
Dogecoin price looks fresh
The Dogecoin price started a new decline well above $0.410, unlike Bitcoin and Ethereum. DOGE traded below the USD 0.4020 and USD 0.400 support levels. It even peaked 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 surpassed the 23.6% Fib retracement level of the downward move from the $0.4136 swing high to the $0.3963 low.
The Dogecoin price is now trading below the $0.4050 level and the 100-hourly moving average. A connecting bullish trendline is also forming with support at $0.3950 on the hourly chart of the DOGE/USD pair.
The immediate resistance on the upside is near the $0.4025 level. The first major resistance for the bulls could be near the $0.4050 level. The next major resistance is near the $0.4095 level or the 76.4% Fib retracement level of the downward move from the $0.4136 swing high to the $0.3963 low.
A close above the resistance at $0.4095 could send the price towards the resistance at $0.4150. Any further gains could send the price towards the USD 0.4350 level. The next big stop for the bulls could be $0.4500.
Lose more at DOGE?
If DOGE price fails to rise above the USD 0.4050 level, it could trigger another decline. The initial downside support is near the $0.3980 level. The next major support is near the $0.3950 level.
The main support is at USD 0.3750. If there is a downside break below the USD 0.3750 support, the price could fall further. In the mentioned case, the price could drop to the $0.350 level or even $0.3420 in the short term.
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 – $0.3980 and $0.3750.
Major resistance levels – $0.4050 and $0.4095.
