Dogecoin declined heavily from the $0.160 resistance level against the US Dollar. If it sustains above the $0.090 support area, DOGE is likely to start a fresh increase.
- DOGE topped near the $0.160 area and a fresh decline has started against the US Dollar.
- The price is trading above the $0.0700 area and the 100-day simple moving average.
- There was a break below a major rising channel with support near $0.1180 on the daily chart of the DOGE/USD pair (data source from Kraken).
- The pair should stay above the $0.090 support area to avoid further losses.
Dogecoin Trims Profit
In the past few days, Dogecoin saw a strong bullish wave trend above the $0.070 resistance area. DOGE rose significantly above the $0.100 resistance level, leaving Bitcoin and Ethereum behind.
The bulls were able to pump the price above the $0.12 resistance area. Finally, there was a rise above the $0.15 level. The price traded as high as $0.1609 and it recently started a downside correction. There was a clear break below the $0.142 and $0.135 support levels.
Doge price fell below the 50% Fib retracement level of the move from $0.0551 low to $0.1609 high. Moreover, there was a break below a major emerging channel with support near $0.1180 on the daily chart of the DOGE/USD pair.
The price is now testing the key $0.0955 support area. It is near the 61.8% Fib retracement level of the upward move from $0.0551 low to $0.11609 high.
Source: DOGEUSD on TradingView.com
If there is a downside break below the $0.0955 support, there could be a further correction in the price. Major support is forming near the $0.0900 and $0.0895 levels. Any further losses could open the door for a move towards the $0.0550 level.
Fresh growth in DOGE?
If DOGE price holds steady above the $0.0955 support, a fresh increase is likely. An initial resistance on the upside is near the $0.1150 level.
The first major resistance is near the $0.1200 level. Any further gains above the $0.1200 area could encourage the bulls to test the crucial $0.135 level.
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.
Key Support Levels – $0.0955, $0.0900 and $0.0550.
Major resistance levels – $0.1150, $0.1200 and $0.1350.