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Dogecoin corrected gains and tested the $0.1620 area against the US dollar. DOGE is now forming a base and may start a new increase above $0.1680.
- DOGE price fell and tested the major support at $0.1620.
- The price is trading below the $0.1650 level and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance at $0.1685 on the hourly chart of the DOGE/USD pair (data source from Kraken).
- The price must settle above $0.170 to move into positive territory and start a new rise.
Dogecoin price maintains support
After a steady increase, Dogecoin price faced resistance near the $0.1750 area. The recent swing high was formed at $0.1705 before DOGE started a downward correction like Bitcoin And Ethereum. There was a decline below the $0.1650 support area.
A bottom has been formed at $0.1620 and DOGE is now consolidating for the next move. Dogecoin is now trading below the $0.1650 level and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $0.1664 level. It is close to the 50% Fib retracement level of the downward move from the swing high at $0.1705 to the swing low at $0.1620.
The next major resistance is near the $0.1685 level or the 76.4% Fib retracement level of the downward move from the $0.1705 high to the $0.1620 low. There is also a major bearish trend line forming with resistance at $0.1685 on the hourly chart of the DOGE/USD pair.
A close above the $0.1685 resistance level could send the price towards the $0.1725 resistance level. Any further gains may push the price towards the $0.1750 level. The next major stop for the bulls could be $0.1800.
More losses in DOGE?
If DOGE price fails to rise above the $0.1685 level, it may start another decline. Initial support on the downside is located near the $0.1620 level.
The next major support is near the $0.1550 level. If a bearish breakout occurs below the $0.1550 support level, the price could fall further. In the mentioned case, the price may fall towards the $0.1520 level.
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.
Key Support Levels – $0.1620, $0.1550, and $0.1520.
Major resistance levels – $0.1660, $0.1685, and $0.1720.
