Dogecoin (DOGE) Makes U-Turn, Why This Support Might Start Fresh Increase

Dogecoin (DOGE) Makes U-Turn, Why This Support Might Start Fresh Increase

Dogecoin declined sharply from the $0.160 resistance against the US Dollar. DOGE might start a fresh rise if it sustains above the $0.090 support zone. DOGE has almost exceeded $0.160 and began a new decline against the US Dollar. The price is well above the $0.0700 zone and the 100-day simple moving average. There was a break below a key ascending channel with support near $0.1180 on the daily chart of the DOGE/USD pair (data feed from Kraken).

The pair must stay above the $0.090 support zone to avoid further losses.

Dogecoin Trims Gains

For the past few days, Dogecoin has witnessed a strong wave above the $0.070 resistance zone. DOGE recovered significantly above the $0.100 resistance, outperforming Bitcoin and Ethereum. The bulls were able to push the price above Resistance zone 12. Finally, there was a rally above $0.15. The price reached $0.1609 and recently started a downside correction.

The support levels of $0.142 and $0.135 were broken

The support levels of $0.142 and $0.135 were broken. Doge price fell below the 50% Fibonacci retracement level of the bullish move from the $0.0551 low to the $0.1609 high. Moreover, there was a break below a key ascending channel with support near $0.1180 on the daily chart of the DOGE/USD pair.

Price is now testing a central support zone at $0.0955. It is close to the 61.8% Fibonacci retracement level from the $0.0551 low to the $0.1609 high.

The price may correct more if there is a break below the $0.0955 support level. Significant support is developing between $0.0900 and $0.0895. Further losses could open the doors for a move toward the $0.0550 level.

Fresh Increase in DOGE?

If the DOGE price holds steady above the $0.0955 support, there are chances for another increase. Initial resistance on the upside is near $0.1150. The first significant resistance is near the $0.1200 level. Any rise above the $0.1200 area could encourage the bulls to test the critical $0.135 level. Technical indicators

4-Hour MACD – The MACD for DOGE/USD is now gaining momentum in the bearish zone. 

4-hour RSI (Relative Strength Index) – The RSI for DOGE/USD is now near the 50 levels.

Primary Support Levels – $0.0955, $0.0900 and $0.0550.

Major Resistance Levels – $0.1150, $0.1200 and $0.1350.

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