Dogecoin started a downward correction from the $0.4050 zone against the US dollar. DOGE is now consolidating and could attempt another increase if it clears the resistance at $0.3680.
- DOGE price started a new decline below USD 0.4050 and USD 0.380.
- The price is trading below the USD 0.3750 level and the 100-hour simple moving average.
- A major bearish trendline is forming with resistance at $0.3650 on the hourly chart of the DOGE/USD pair (Kraken data source).
- The price could rise again if it crosses the USD 0.3650 and USD 0.3680 resistance levels.
Dogecoin price drops in support
Dogecoin price started a new decline from the $0.4050 resistance zone, unlike Bitcoin and Ethereum. DOGE dipped below the USD 0.400 and USD 0.380 support levels. It even peaked below $0.350.
A low was formed at $0.3380 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $0.3860 swing high to the $0.3380 low. There is also a major bearish trendline forming with resistance at $0.3650 on the hourly chart of the DOGE/USD pair.
The Dogecoin price is now trading below the $0.3750 level and the 100-hourly moving average. The immediate resistance on the upside is near the $0.3650 level and the trendline.
The first major resistance for the bulls could be near the $0.3680 level or the 61.8% Fib retracement level of the downward move from the $0.3860 swing high to the $0.3380 low. The next major resistance is around the $0.3750 level.
A close above the resistance at $0.3750 could send the price towards the resistance at $0.3860. Any further gains could send the price towards the USD 0.40 level. The next big stop for the bulls could be $0.420.
Another drop in DOGE?
If DOGE price fails to rise above the USD 0.3750 level, it could trigger another decline. The initial downside support is near the USD 0.340 level. The next major support is near the $0.3380 level.
The main support is at $0.3250. If there is a downside break below the USD 0.3250 support, the price could fall further. In the mentioned case, the price could drop to the $0.3020 level or even $0.300 in the short term.
Technical indicators
Hourly MACD – The MACD for DOGE/USD is now gaining strength in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.
Major support levels – $0.3380 and $0.3250.
Major resistance levels – $0.3650 and $0.3750.
