Dogecoin declined heavily from the $0.160 resistance against the US Dollar. DOGE could start a fresh increase if it stays above the $0.090 support zone.
- DOGE topped near the $0.160 zone and started a fresh decline against the US dollar.
- The price is trading well above the $0.0700 zone and the 100-day simple moving average.
- There was a break below a key rising channel with support near $0.1180 on the daily chart of the DOGE/USD pair (data source from Kraken).
- The pair must stay above the $0.090 support zone to avoid more losses.
Dogecoin Trims Gains
In the past few days, dogecoin saw a strong bullish wave above the $0.070 resistance zone. DOGE rallied significantly above the $0.100 resistance, outpacing bitcoin and ethereum.
The bulls were able to pump the price above the $0.12 resistance zone. Finally, there was a spike above the $0.15 level. The price traded as high as $0.1609 and recently started a downside correction. There was a clear move below the $0.142 and $0.135 support levels.
Doge price declined below the 50% Fib retracement level of the upward move from the $0.0551 swing low to $0.1609 high. Besides, there was a break below a key rising channel with support near $0.1180 on the daily chart of the DOGE/USD pair.
The price is now testing a major support zone at $0.0955. It is near the 61.8% Fib retracement level of the upward move from the $0.0551 swing low to $0.1609 high.
Source: DOGEUSD on TradingView.com
If there is a downside break below the $0.0955 support, the price could correct further. The main support is forming near the $0.0900 and $0.0895 levels. Any more losses could open the doors for a move towards the $0.0550 level.
Fresh Increase in DOGE?
If DOGE price remains stable above the $0.0955 support, there are chances of a fresh increase. An initial resistance on the upside is near the $0.1150 level.
The first major resistance is near the $0.1200 level. Any more gains above the $0.1200 zone could encourage the bulls to aim a test the important $0.135 level.
Technical Indicators
4-Hours MACD – The MACD for DOGE/USD is now gaining momentum in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now near the 50 level.
Major Support Levels – $0.0955, $0.0900 and $0.0550.
Major Resistance Levels – $0.1150, $0.1200 and $0.1350.
Source: https://www.newsbtc.com/analysis/dogecoin-doge-makes-u-turn-010/