Dogecoin (DOGE) Battles Gravity, Can It Escape a Potential Freefall?

Dogecoin started a fresh decline below the $0.250 zone against the US Dollar. DOGE is now consolidating and might dip further below $0.2250.

• DOGE price started a fresh decline below the $0.2420 level.
• The price is trading below the $0.2320 level and the 100-hourly simple moving average.
• There was a break below a key rising channel with support at $0.2295 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could start a fresh upward move if it stays above the $0.2165 zone.

Dogecoin price started a fresh increase above the $0.240 resistance zone, like Bitcoin and Ethereum. DOGE even spiked above $0.2420 before the bears appeared.

A high was formed at $0.2430 and the price started a fresh decline. There was a move below the $0.240 and $0.2350 levels. The price dipped below the 50% Fib retracement level of the upward move from the $0.2163 swing low to the $0.2430 high.

Besides, there was a break below a key rising channel with support at $0.2295 on the hourly chart of the DOGE/USD pair. Dogecoin price is now trading below the $0.2320 level and the 100-hourly simple moving average.

The bulls are now protecting the 76.4% Fib retracement level of the upward move from the $0.2163 swing low to the $0.2430 high. If there is a recovery wave, immediate resistance on the upside is near the $0.2295 level. The first major resistance for the bulls could be near the $0.2320 level.

The next major resistance is near the $0.2420 level. A close above the $0.2420 resistance might send the price toward the $0.250 resistance. Any more gains might send the price toward the $0.2650 level. The next major stop for the bulls might be $0.2780.

If DOGE’s price fails to climb above the $0.2320 level, it could continue to move down. Initial support on the downside is near the $0.2220 level. The next major support is near the $0.2165 level.

The main support sits at $0.2150. If there is a downside break below the $0.2150 support, the price could decline further. In the stated case, the price might decline toward the $0.2050 level or even $0.2020 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 – $0.2165 and $0.2150.

Major Resistance Levels – $0.2320 and $0.2420.