Dogecoin recently experienced a correction in its gains, testing the $0.1620 zone against the US Dollar. Despite this, DOGE is now showing signs of forming a base and potentially initiating a fresh increase above $0.1680. The price is currently trading below the $0.1650 level and the 100-hourly simple moving average, indicating a period of consolidation in the market.
A key bearish trend line is forming with resistance at $0.1685 on the hourly chart of the DOGE/USD pair. In order for Dogecoin to move into a positive zone and start a fresh surge, it must settle above $0.170. The recent swing high was at $0.1705 before the downside correction began. Currently, the price is facing resistance near the $0.1664 level and the 50% Fib retracement level of the downward move from the swing high to the low at $0.1620. The next major resistance is anticipated near the $0.1685 level, with further resistance levels at $0.1725 and $0.1750.
Potential Scenarios
If Dogecoin’s price fails to gain momentum above the $0.1685 level, it could lead to another decline in the market. The initial support on the downside is expected near the $0.1620 level, with a major support level at $0.1550. A break below the $0.1550 support could result in further downside movement, potentially reaching the $0.1520 level.
The hourly MACD for DOGE/USD is currently losing momentum in the bearish zone, indicating a potential shift in market sentiment. The hourly RSI for DOGE/USD is below the 50 level, suggesting a period of consolidation and uncertainty in the market.
Dogecoin’s price action in the coming days will be crucial in determining its future trajectory. While the current market situation indicates a period of consolidation, key resistance and support levels will play a crucial role in determining the direction of the price. Traders and investors should closely monitor these levels and technical indicators to make informed decisions in the volatile cryptocurrency market.
