Dogecoin has experienced a significant drop below the $0.280 support level against the US Dollar. The cryptocurrency is now attempting a recovery, with potential resistance looming near $0.270.
Dogecoin's price initiated a decline, breaching support levels at $0.2850 and $0.2650. Currently, it remains below the $0.280 mark and under the 100-hourly simple moving average.
A dominant bearish trend line is forming, presenting resistance at $0.270 on the hourly chart for the DOGE/USD pair, according to Kraken data. A further price increase could occur if it surpasses the resistance levels at $0.250 and $0.270.
Similar to trends observed with Bitcoin and Ethereum, Dogecoin slid from the $0.3250 resistance zone, falling below $0.300 and $0.2750 support benchmarks, and even briefly dipping beneath $0.220. This decline amounted to over 25%, touching a low of $0.20 before rebounding. It has since moved past the 23.6% Fibonacci retracement level of the fall from a $0.3416 high down to $0.20.
Currently, Dogecoin is trading above its $0.280 level and the 100-hourly simple moving average, with immediate upside resistance expected near $0.250. The initial key resistance for upward momentum may appear near $0.260. Following this, the next notable resistance is expected around $0.270, or at the 50% Fib retracement level from the $0.3416 peak to the $0.20 trough. Additionally, a significant bearish trend line with resistance is forming at $0.270 on the hourly DOGE/USD chart.
Should the price close above $0.270 resistance, it may advance toward $0.2880, with further increases potentially reaching the $0.30 mark. The next significant target for bulls could be $0.320.
If Dogecoin does not climb above the $0.250 resistance level, another decrease may ensue. Initial support may be found around $0.2250, followed by substantial support at $0.2150. The primary support stands at $0.20. Should the price break beneath this level, further declines are possible, potentially dropping to $0.1880 or even $0.1650.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.