Dogecoin traded below $0.1300 on Dec. 16, declining through multiple support levels after failing to hold above $0.1380. The cryptocurrency formed a low near $0.1266 and now faces resistance at $0.1340, with technical indicators suggesting further downside risk if current levels break.
What Happened: Price Decline
Dogecoin began a fresh decline after closing below $0.1380, mirroring broader weakness in Bitcoin and Ethereum. The price dropped through $0.1350 and $0.1340 support levels, reaching a session low near $0.1266.
The cryptocurrency now trades below its 100-hourly simple moving average and the $0.1300 threshold. It is consolidating below the 23.6% Fibonacci retracement level of the downward move from the $0.1530 swing high to the $0.1266 low.
A key bearish trend line has formed with resistance at $0.1340 on the hourly chart.
If a recovery develops, immediate resistance sits near $0.1325, with major resistance at $0.1340.
The next significant resistance level is $0.1400, coinciding with the 50% Fibonacci retracement of the recent decline. A close above this level could push the price toward $0.1450, with further gains potentially reaching $0.1500 or $0.1550.
Also Read: Bitcoin Faces Potential 20% Decline Before Japan's Rate Decision
Why It Matters: Support Levels
Failure to reclaim $0.1350 could trigger additional losses. Initial support on the downside sits at $0.1280, followed by $0.1250.
The main support level is $0.120. A break below this threshold could accelerate the decline toward $0.1050 or $0.10 in the near term, according to technical analysis.
The hourly MACD is gaining momentum in bearish territory, while the Relative Strength Index remains above 50. Major support levels are $0.1280 and $0.1250, with resistance at $0.1340 and $0.1350.
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