Dogecoin (DOGE) Extends Losses – Is This the Final Shakeout Before Big Rally?

Aayush Jindal

15 hours ago

2 mins read

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Dogecoin started a fresh decline below the $0.2550 zone against the US Dollar. DOGE is now consolidating and might dip further if it stays below $0.260.

DOGE price started a fresh decline below the $0.2550 level.
The price is trading below the $0.2550 level and the 100-hourly simple moving average.
There is a bearish trend line forming with resistance at $0.250 on the hourly chart of the DOGE/USD pair (data source from Kraken).
The price could start a decent recovery wave if it stays above the $0.2250 zone.

Dogecoin Price Dips Further

Dogecoin price started a fresh decline after there was a close below $0.2620, like Bitcoin and Ethereum. DOGE declined below the $0.2550 and $0.250 support levels.

The price even traded below $0.240. A low was formed at $0.2303, and the price is now consolidating losses below the 23.6% Fib retracement level of the recent decline from the $0.2888 swing high to the $0.2303 low. Besides, there is a bearish trend line forming with resistance at $0.250 on the hourly chart of the DOGE/USD pair.

Dogecoin price is now trading below the $0.2450 level and the 100-hourly simple moving average. If there is a recovery wave, immediate resistance on the upside is near the $0.2440 level.

The first major resistance for the bulls could be near the $0.250 level and the trend line. The next major resistance is near the $0.260 level. It is close to the 50% Fib retracement level of the recent decline from the $0.2888 swing high to the $0.2303 low. A close above the $0.260 resistance might send the price toward the $0.280 resistance. Any more gains might send the price toward the $0.2880 level. The next major stop for the bulls might be $0.30.

Another Drop In DOGE?

If DOGE’s price fails to climb above the $0.250 level, it could continue to move down. Initial support on the downside is near the $0.2350 level. The next major support is near the $0.230 level.

The main support sits at $0.2250. If there is a downside break below the $0.2250 support, the price could decline further. In the stated case, the price might slide toward the $0.2120 level or even $0.2050 in the near term.

Technical Indicators

Hourly MACD – The MACD for DOGE/USD is now losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.

Major Support Levels – $0.2350 and $0.2300.

Major Resistance Levels – $0.2500 and $0.2600.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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