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Dogecoin on Shaky Ground: Will DOGE Recover or Dip Further?
Dogecoin (DOGE) is the most well-known meme coin, and is currently under more selling pressure amid the crypto market is overall reeling from increased fluctuations. Following a slowing of its momentum over the $0.1720 threshold, DOGE has entered an upward trend, which may indicate more losses to come.
DOGE Struggles Below Key Levels
In the last few days of trading, Dogecoin has been unable to maintain critical levels of support and has been slipping to under $0.1650 and finally $0.1550 concerning USD. US Dollar. In the present time, DOGE is hovering under the $0.1600 mark and is still below the simple moving average of 100 hours which is a clear indication that the bears remain in charge.
A distinct bearish trend line has been observed in the hourly chart, and resistance is forming near the $0.160 threshold (data from Kraken). The trend line may be inhibiting the potential for DOGE to recover.
Attempted Rebound Falls Short
DOGE attempted a modest rebound after falling to a low local to $0.1296. The price briefly crossed above the 50 percent Fibonacci retracement level that spanned that was set from the $0.1727 low to the $0.1296 low. But the rebound was only for a short time, and significant resistance was evident in the $0.1560 area — also known as the 61.8 percent Fibonacci retracement level preventing prices from bursting.
Key Resistance and Support Zones
- Immediate Resistance: $0.1500
- Major Resistance Levels: $0.1550 and $0.1600
- A bullish target if reclaimed: $0.1720, with the possibility of $0.1800 as well as $0.1880
If bulls can get DOGE over the $0.1600 threshold and make a solid close then we may be seeing a move towards greater resistance targets. However, that’s an enormous “if” at this point.
Bearish Scenario: More Pain Ahead?
If Dogecoin is unable to surpass $0.1500, it is at risk of beginning an upward trend. Initial support is $0.1380 However, the most significant test may be at $0.1320. If DOGE dips below its primary resistance of $0.1280, A drop to $0.1200 or $0.1120 may be possible.
Technical Outlook
- MACD (Hourly): Gaining momentum in the bearish zone
- RSI (Hourly): Below 50, indicating bearish momentum
- Support Levels to Watch: $0.1320 and $0.1280
- Resistance Levels to Watch: $0.1500 and $0.1550
Bottom Line
Dogecoin is in an extremely difficult situation right now, and until bulls come in quickly and the coin can recover, it could suffer further losses. Although a break higher than $0.1600 may change the game the current indicators of technical analysis suggest cautiousness. Be on the lookout and keep watch on the support zones break in one of them could cause even higher prices over the next few days.
