Dogecoin has started a downward correction after falling below the $0.400 support against the US dollar. DOGE is currently consolidating and could aim for another rally above $0.4050.
DOGE price started a new decline below the $0.40 level. The price is trading below the $0.4050 level and the 100 hourly simple moving average. On the hourly chart of the DOGE/USD pair, a bullish trend line has formed connecting at $0.3950 as support (data source: Kraken). If the price breaks above the resistance levels at $0.4050 and $0.4150, the price could rise again.
Dogecoin price sees new rise
Dogecoin price, unlike Bitcoin and Ethereum, started a new decline from levels well above $0.410. DOGE traded below the $0.4020 and $0.400 support levels. It soared to a level below 0.3980 USD.
A low was formed at $0.3963 and the price is currently consolidating losses. It recovered some points and exceeded $0.40. It was above the 23.6% Fib retracement level of the decline from the swing high of $0.4136 to the low of $0.3963.
Dogecoin price is currently trading below the $0.4050 level and the 100-hour simple moving average. On the hourly chart of the DOGE/USD pair, a bullish trend line has also formed connecting at $0.3950 as support.
For now, the upside resistance is near $0.4025. The first major resistance for the bulls could be around $0.4050. The next major resistance is near the $0.4095 level, or the 76.4% Fib retracement level of the decline from the swing high of $0.4136 to the low of $0.3963.
If the price closes above the $0.4095 resistance, the price could head towards the $0.4150 resistance. Further upside could send the price towards the $0.4350 level. The next major stop for the bulls could be at $0.4500.
Will DOGE cause more losses?
If DOGE price does not break above the $0.4050 level, further decline may begin. Downside support is near USD 0.3980. The next major support level is near USD 0.3950.
The main support level is at USD 0.3750. If the price breaks below the support at USD 0.3750, the price may fall further. In the above case, the price may fall towards the $0.350 level and even $0.3420 in the short term.
technical indicators
Hourly MACD – The MACD for DOGE/USD is currently losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is currently below the 50 level.
Major support levels – $0.3980 and $0.3750.
Key resistance levels – $0.4050 and $0.4095.
