Dogecoin faces potential downside pressure after its recent rally stalled near key resistance levels, according to technical analysis. The cryptocurrency now trades in a consolidation phase with critical support zones determining its next directional move.
The meme coin's inability to sustain momentum above $0.1350 has raised concerns about a possible correction toward lower support levels.
What Happened: Rally Stalls
Dogecoin initiated a recovery above $0.1280 and $0.130, following similar upward movements in Bitcoin and Ethereum. The token climbed past $0.1320 resistance before reaching an intraday high of $0.1352.
The price has since pulled back below $0.130 and the 100-hourly simple moving average.
Current trading occurs near $0.1315, where a bullish trend line provides immediate support on the hourly chart of the DOGE/USD pair.
The retracement moved below the 23.6% Fibonacci level of the upward swing from the $0.1198 low to the $0.1352 peak.
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Why It Matters: Critical Levels
Technical indicators suggest weakening bullish momentum in Dogecoin's price action. The hourly MACD shows declining strength in the bullish zone, while the Relative Strength Index has dropped below the 50 level.
Immediate resistance sits at $0.1350, with major barriers at $0.1380 and $0.1420.
A sustained break above $0.1420 could propel the price toward $0.1460 and potentially $0.150, with the next significant target at $0.1550.
Conversely, failure to reclaim $0.1350 could trigger downside movement. Initial support appears at $0.1310 and the trend line, followed by major support at $0.1275, which aligns with the 50% Fibonacci retracement level of the recent rally.
The main support zone sits at $0.1235. A breakdown below this level could accelerate losses toward $0.1220 or $0.120 in the near term, according to chart analysis.