Dogecoin (DOGE) Stuck In Limbo—What’s Holding Back The Recovery?

Dogecoin started a fresh decline below the $0.270 zone against the US Dollar. DOGE is now consolidating and might face hurdles near $0.2550.

• DOGE price started a fresh decline below the $0.270 and $0.260 levels.
• The price is trading below the $0.260 level and the 100-hourly simple moving average.
• There is a connecting bearish trend line forming with resistance at $0.2560 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could start another increase if it clears the $0.2560 and $0.2600 resistance levels.

Dogecoin price started a fresh decline from the $0.2840 resistance zone, like Bitcoin and Ethereum. DOGE dipped below the $0.270 and $0.260 support levels. It even spiked below $0.250.

A low was formed at $0.2420 and the price is now attempting to recover. There was a move above the 23.6% Fib retracement level of the downward wave from the $0.2830 swing high to the $0.2420 low. The price even cleared the $0.2500 resistance level.

Dogecoin price is now trading below the $0.260 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.2550 level. There is also a connecting bearish trend line forming with resistance at $0.2560 on the hourly chart of the DOGE/USD pair.

The first major resistance for the bulls could be near the $0.2620 level or the 50% Fib retracement level of the downward wave from the $0.2830 swing high to the $0.2420 low. The next major resistance is near the $0.2670 level.

A close above the $0.2670 resistance might send the price toward the $0.300 resistance. Any more gains might send the price toward the $0.320 level. The next major stop for the bulls might be $0.3420.

If DOGE’s price fails to climb above the $0.260 level, it could start another decline. Initial support on the downside is near the $0.2480 level. The next major support is near the $0.2420 level.

The main support sits at $0.2350. If there is a downside break below the $0.2350 support, the price could decline further. In the stated case, the price might decline toward the $0.2220 level or even $0.2150 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 – $0.2480 and $0.2420.

Major Resistance Levels – $0.2600 and $0.2620.