Dogecoin Price Tumbles Below Support, Why This Could Be Strong Bearish

Dogecoin extended its decline below the $0.070 support against the US Dollar. DOGE could continue to move down towards the $0.0620 support zone.

• DOGE gained pace and traded below the $0.072 support against the US dollar.
• The price is trading below the $0.0700 zone and the 100 simple moving average (4-hours).
• There is a key bearish trend line forming with resistance near $0.0698 on the 4-hours chart of the DOGE/USD pair (data source from Kraken).
• The pair could dive further towards the $0.062 support in the near term.

In the past few days, dogecoin saw a steady decline from the $0.080 resistance zone. DOGE reacted to the downside below the $0.0750 and $0.0720 support levels.

The decline gained pace below the $0.072 level and the 100 simple moving average (4-hours). More importantly, there was a clear move below the $0.070 support zone, opening the doors for a major decline. The price is now trading well below the $0.0700 zone and the 100 simple moving average (4-hours).

Doge price traded as low as $0.0667 and is currently showing a lot of bearish signs, similar bitcoin and ethereum. On the upside, the price is facing resistance near the $0.0695 level.

The first major resistance is near the $0.0700 level. There is also a key bearish trend line forming with resistance near $0.0698 on the 4-hours chart of the DOGE/USD pair. The trend line is near the 23.6% Fib retracement level of the downward move from the $0.0795 swing high to $0.0667 low.

A clear move above the trend line might send the price towards the $0.073 resistance. It is near the 50% Fib retracement level of the downward move from the $0.0795 swing high to $0.0667 low.

Source: DOGEUSD on TradingView.com

Any more gains might send the price towards the $0.0765 level and the 100 SMA. The main hurdle seems to be forming near the $0.080 zone. A clear move above the $0.080 resistance could open the gates for a rally towards the $0.100 level.

If DOGE price fails to gain pace above the $0.070 level, it could continue to move down. An initial support on the downside is near the $0.0665 level.

The next major support is near the $0.062 level. If there is a downside break below the $0.0620 support, the price could decline further. In the stated case, the price might decline towards the $0.060 level.

Technical Indicators

4-Hours MACD – The MACD for DOGE/USD is now gaining momentum in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now in the oversold zone.

Major Support Levels – $0.0665, $0.0662 and $0.0600.

Major Resistance Levels – $0.070, $0.0730 and $0.080.