Dogecoin (DOGE) Turns Red—But Is It a Dip Worth Buying?

Dogecoin started a fresh decline from the $0.1850 zone against the US Dollar. DOGE is now correcting losses and might find face hurdles near $0.1740.

• DOGE price failed to clear $0.1880 and corrected gains.
• The price is trading below the $0.1750 level and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $0.1725 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could start a fresh increase if it clears the $0.1780 resistance zone.

Dogecoin price started a fresh decline after it failed to clear the $0.1880 zone, like Bitcoin and Ethereum. DOGE declined below the $0.1800 and $0.1750 support levels.

Finally, it tested the $0.1680 zone. A low was formed at $0.1685 and the price is now attempting a recovery wave. It climbed above the $0.170 and toward the 23.6% Fib retracement level of the downward move from the $0.1843 swing high to the $0.1685 low.

Dogecoin price is now trading below the $0.1750 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.1720 level. There is also a key bearish trend line forming with resistance at $0.1725 on the hourly chart of the DOGE/USD pair.

The first major resistance for the bulls could be near the $0.1765 level and the 50% Fib retracement level of the downward move from the $0.1843 swing high to the $0.1685 low. The next major resistance is near the $0.1780 level. A close above the $0.1780 resistance might send the price toward the $0.1850 resistance. Any more gains might send the price toward the $0.1880 level. The next major stop for the bulls might be $0.200.

If DOGE’s price fails to climb above the $0.1740 level, it could start another decline. Initial support on the downside is near the $0.1685 level. The next major support is near the $0.1650 level.

The main support sits at $0.1600. If there is a downside break below the $0.160 support, the price could decline further. In the stated case, the price might decline toward the $0.1550 level or even $0.1450 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 – $0.1685 and $0.1650.

Major Resistance Levels – $0.1740 and $0.1780.