TLDR
- DOGE price declined below the $0.2420 level after briefly spiking above it
- Price is trading below the $0.2320 level and the 100-hourly simple moving average
- A key rising channel with support at $0.2295 was broken on the hourly chart
- Bulls are defending the 76.4% Fibonacci retracement level from the recent swing
- Immediate resistance is near $0.2295, with major support at $0.2165 and $0.2150
Dogecoin has entered a period of consolidation following a fresh decline that took it below the $0.250 zone against the US Dollar. The popular meme cryptocurrency is showing signs of bearish momentum, with technical indicators suggesting further downside potential.
The price action for DOGE began with a promising increase above the $0.240 resistance zone, mirroring similar movements seen in Bitcoin and Ethereum. This upward momentum pushed Dogecoin to spike above $0.2420, reaching a local high of $0.2430.
However, this bullish phase was short-lived as sellers entered the market, triggering a fresh decline. The price subsequently moved below several key levels, including $0.240 and $0.2350.
The downward pressure intensified as DOGE dipped below the 50% Fibonacci retracement level of the upward move from the $0.2163 swing low to the $0.2430 high.
A critical technical development occurred when the price broke below a key rising channel with support at $0.2295 on the hourly chart of the DOGE/USD pair, using data from Kraken exchange.
Currently, Dogecoin is trading below both the $0.2320 level and the 100-hourly simple moving average, which typically indicates bearish sentiment in the short term.
Despite the negative pressure, buyers appear to be defending an important level. The bulls are protecting the 76.4% Fibonacci retracement level of the upward move from the $0.2163 swing low to the $0.2430 high.
Potential Recovery Scenarios
If Dogecoin manages to initiate a recovery wave, the immediate resistance would be near the $0.2295 level. This represents the first hurdle that bulls need to overcome to regain positive momentum.
Beyond this initial resistance, the first major barrier for buyers lies near the $0.2320 level, which coincides with the 100-hourly simple moving average.
The next major resistance is positioned near $0.2420, a level that previously served as a local top. A successful close above this resistance could potentially send the price toward the $0.250 resistance.
Should buying pressure intensify, further gains might push DOGE toward the $0.2650 level, with the next major target for bulls possibly being $0.2780.
Downside Risks
The outlook becomes less favorable if DOGE fails to climb above the $0.2320 level. In such a scenario, the price could continue its downward trajectory.
The initial support on the downside is near the $0.2220 level. If this fails to hold, the next major support is located near $0.2165, followed by the main support at $0.2150.
A break below the $0.2150 support could trigger a more severe decline. In this case, the price might drop toward the $0.2050 level or even reach $0.2020 in the near term.
Technical indicators support the bearish case. The hourly MACD for DOGE/USD is gaining momentum in the bearish zone, while the hourly RSI (Relative Strength Index) has dipped below the 50 level.
The current key support levels are $0.2165 and $0.2150, while the major resistance levels are $0.2320 and $0.2420.
Dogecoin price remains highly sensitive to broader market trends and could see quick reversals based on overall crypto market sentiment or specific developments related to the token.
The most recent data shows DOGE trading below key moving averages while bulls attempt to defend critical Fibonacci retracement levels that could determine its short-term direction.
The post Dogecoin (DOGE) Price: Technical Analysis Shows Break Below Key Support at $0.2295 appeared first on Blockonomi.
Source: https://blockonomi.com/dogecoin-doge-price-technical-analysis-shows-break-below-key-support-at-0-2295/