Dogecoin corrected some gains and traded below $0.1050 against the US dollar. DOGE now holds the $0.10 support and could target another increase.
- DOGE price started a new downside correction below USD 0.1120.
- The price is trading below the USD 0.1050 level and the 100-hour simple moving average.
- A descending channel is forming with resistance at $0.1020 on the hourly chart of the DOGE/USD pair (Kraken data source).
- The price could aim for another increase if it remains stable above $0.10.
Dogecoin price faces resistance
Dogecoin’s price started a downward correction after failing to stay above $0.1150 like Bitcoin and Ethereum. DOGE fell below the USD 0.1100 and USD 0.1080 levels.
There was a move below the 50% Fib retracement level of the upward move from the $0.0878 swing low to the $0.1175 high. The price even spiked below $0.10 before the bulls appeared. The price is now forming a base above $0.10 and preparing for the next move.
A descending channel is also forming with resistance at $0.1020 on the hourly chart of the DOGE/USD pair. The Dogecoin price is now trading below the $0.1050 level and the 100-hourly moving average. The immediate resistance on the upside is near the $0.1020 level. The first major resistance for the bulls could be near the $0.1070 level.
The next major resistance is near the $0.1120 level. A close above the USD 0.1120 resistance could send the price towards USD 0.1150. Any further gains could send the price towards $0.1180. The next big stop for the bulls could be $0.120.
Another drop in DOGE?
If DOGE price fails to rise above the USD 0.1020 level, it could continue to decline. The initial downside support is near the $0.10 level.
The next major support is near the $0.0945 level or the 76.4% Fib retracement level of the upward move from the $0.0878 swing low to the $0.1175 high. The main support is at $0.0920. If there is a downside break below the USD 0.0920 support, the price could fall further. In the mentioned case, the price could slide towards the $0.0875 level or even $0.0865 in the short term.
Technical indicators
Hourly MACD – The MACD for DOGE/USD is now losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.
Major support levels – USD 0.1000 and USD 0.0945.
Major resistance levels – $0.1020 and $0.1070.