Dogecoin has entered a consolidation phase after falling below the $0.19 mark against the U.S. Dollar. The popular cryptocurrency recently tested the $0.1820 support level and now faces resistance below $0.2150.
The digital asset began its decline by breaking below several key support levels. Dogecoin first dropped under the $0.2150 threshold and continued falling past $0.2100. The price movement positioned DOGE below both the $0.2100 level and the 100-hourly simple moving average, signaling bearish sentiment among traders.
Technical analysts noted a significant development on the hourly chart. Data from Kraken shows DOGE/USD broke above a connecting bearish trend line with resistance at $0.1900. This technical pattern typically suggests potential for upward movement. Recovery hopes now hinge on whether the cryptocurrency can clear the immediate resistance levels at $0.2050 and $0.2120.
Dogecoin's recent price action mirrored movements seen in Bitcoin and Ethereum. The cryptocurrency dipped below multiple support zones at $0.2050 and $0.2000. It continued falling and briefly traded below $0.1880 before reaching a low point at $0.1826. The market has since shown signs of consolidating these losses.
Bulls managed to push the price above $0.1950. This represents the 23.6% Fibonacci retracement level of the downward move from the $0.2421 swing high to the $0.1826 low. Despite this modest recovery, Dogecoin still trades below the critical $0.2150 level and the 100-hourly simple moving average.
Traders identify the $0.2050 mark as immediate resistance. The first major hurdle for bulls appears at the $0.2120 level, which coincides with the 50% Fibonacci retracement level of the recent downward move. Should buyers overcome this zone, the next significant resistance stands at $0.2195.
A successful close above $0.2195 could potentially send Dogecoin toward $0.2220. Further gains might push the price to $0.2350. Technical analysts suggest the next major target for bulls would be $0.2420 if upward momentum continues.
Failure to climb above $0.2050 could trigger another decline. Initial support exists near $0.1950, with major support at $0.1920. The critical support level sits at $0.1820. A break below this threshold could accelerate the downward movement toward $0.1740 or even $0.1650 in the near term.
The technical indicators show mixed signals. The MACD (Moving Average Convergence Divergence) for DOGE/USD is losing momentum in the bearish zone. Meanwhile, the RSI (Relative Strength Index) currently reads above the 50 level, suggesting modestly bullish short-term sentiment. Key support levels remain at $0.1950 and $0.1820, while major resistance levels stand at $0.2050 and $0.2120.
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.