Dogecoin recently experienced a corrective phase in its price action, with the cryptocurrency dropping to the $0.1620 support level against the US Dollar. This correction came after DOGE encountered resistance near the $0.1750 zone and formed a swing high at $0.1705. Following in the footsteps of Bitcoin and Ethereum, Dogecoin faced a downside correction that tested key levels of support.
Currently, Dogecoin is consolidating below the $0.1650 level and the 100-hourly simple moving average. It is important to note that the price is now forming a base and might initiate a fresh uptrend above $0.1680. However, there are hurdles to overcome, with a bearish trend line resistance at $0.1685. The price needs to reclaim $0.170 and push higher to enter a positive zone for further upside potential.
The hourly MACD for DOGE/USD is showing signs of momentum loss in the bearish region, indicating a potential shift in price action. Additionally, the hourly RSI is below the 50 level, suggesting a slight bearish bias in the short term.
On the downside, initial support is seen at $0.1620, followed by a major support level at $0.1550. A break below $0.1550 could lead to further downside towards $0.1520. However, if Dogecoin manages to break above the $0.1685 resistance, it may target the $0.1725 and $0.1750 levels next, with a potential rally towards $0.1800.
Dogecoin is currently at a pivotal point in its price trajectory, with the potential for both upside and downside movements depending on key levels of resistance and support. Traders and investors should keep a close eye on the price action and monitor technical indicators for potential entry and exit points in the market.
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