Dogecoin (DOGE) Struggles Again – Is Market Preparing For Another Sharp Drop?

Dogecoin started a fresh decline below the $0.250 zone against the US Dollar. DOGE is now consolidating and might dip further if it stays below $0.2550.

• DOGE price started a fresh decline below the $0.250 level.
• The price is trading below the $0.250 level and the 100-hourly simple moving average.
• There is a bearish trend line forming with resistance at $0.2450 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could extend losses if there is a move below $0.230.

Dogecoin Price Turns Red

Dogecoin price started a fresh decline after it closed below $0.2550, like Bitcoin and Ethereum. DOGE declined below the $0.250 and $0.2450 support levels.

The price even traded below $0.2350. A low was formed near $0.230, and the price recently attempted a recovery wave. There was a move above the 23.6% Fib retracement level of the main decline from the $0.2888 swing high to the $0.2302 low.

However, the bears were active near the $0.250 resistance. Besides, there is a bearish trend line forming with resistance at $0.2450 on the hourly chart of the DOGE/USD pair.

Dogecoin price is now trading below the $0.250 level and the 100-hourly simple moving average. If there is a recovery wave, immediate resistance on the upside is near the $0.2450 level and the trend line. The first major resistance for the bulls could be near the $0.250 level.

The next major resistance is near the $0.260 level. It is close to the 50% Fib retracement level of the main decline from the $0.2888 swing high to the $0.2302 low. A close above the $0.260 resistance might send the price toward the $0.2780 resistance. Any more gains might send the price toward the $0.2840 level. The next major stop for the bulls might be $0.2920.

More Losses In DOGE?

If DOGE’s price fails to climb above the $0.2450 level, it could continue to move down. Initial support on the downside is near the $0.2320 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 gaining momentum in the bearish zone.

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

Major Support Levels – $0.2320 and $0.2300.

Major Resistance Levels – $0.2450 and $0.2500.