Dogecoin (DOGE) Faces Market Correction—Will Buyers Step Back In?

Dogecoin started a fresh decline from the $0.2050 zone against the US Dollar. DOGE is declining and might test the $0.180 support zone.

• DOGE price started a fresh decline below the $0.1980 and $0.1920 levels.
• The price is trading above the $0.180 level and the 100-hourly simple moving average.
• There was a break below a connecting bullish trend line with support at $0.1950 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could gain bullish momentum if it clears the $0.1940 and $0.1980 resistance levels.

Dogecoin price started a fresh decline after it failed to clear $0.2050, like Bitcoin and Ethereum. DOGE dipped below the $0.1980 and $0.1920 support levels.

The bears were able to push the price below the 23.6% Fib retracement level of the upward move from the $0.1665 swing low to the $0.2057 high. There was also a break below a connecting bullish trend line with support at $0.1950 on the hourly chart of the DOGE/USD pair.

Dogecoin price is now trading above the $0.180 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.1920 level.

The first major resistance for the bulls could be near the $0.1980 level. The next major resistance is near the $0.2050 level. A close above the $0.2050 resistance might send the price toward the $0.2150 resistance. Any more gains might send the price toward the $0.2220 level. The next major stop for the bulls might be $0.2350.

If DOGE’s price fails to climb above the $0.1920 level, it could start another decline. Initial support on the downside is near the $0.1860 level and the 50% Fib retracement level of the upward move from the $0.1665 swing low to the $0.2057 high. The next major support is near the $0.1820 level.

The main support sits at $0.1750. If there is a downside break below the $0.1750 support, the price could decline further. In the stated case, the price might decline toward the $0.170 level or even $0.1650 in the near term.

Technical Indicators

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

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

Major Support Levels – $0.1860 and $0.1820.

Major Resistance Levels – $0.1920 and $0.1980.