Dogecoin (DOGE) is currently undergoing a correction after reaching the $0.180 mark against the US Dollar. Following a drop to $0.1420, DOGE is on the path to recovery. This article analyzes the potential for Dogecoin's price to initiate a fresh increase, focusing on key resistance and support levels that could dictate its next moves.
1- Dogecoin Price Analysis
The Dogecoin price recently began a decline after struggling to surpass the $0.180 resistance, similar to trends seen in Bitcoin and Ethereum. DOGE fell below critical support levels of $0.1720 and $0.1650, even dipping below $0.1550 before buyers stepped in. A low was established at $0.1422, and the price has since attempted to rebound, crossing above the $0.150 resistance zone. This move also saw DOGE surpass the 23.6% Fibonacci retracement level of the recent downtrend from the $0.1790 high to the $0.1422 low.
Currently, Dogecoin is hovering around the $0.156 level and the 100-hourly simple moving average, with immediate resistance forming near $0.1565. A crucial resistance point lies at $0.1580, where a bearish trend line is also present on the hourly chart of the DOGE/USD pair.
2- Dogecoin Price Increase Potential
If Dogecoin can break through the $0.1580 resistance, it may surge toward the $0.1600 level, with further gains potentially pushing the price up to $0.1650 or the 61.8% Fibonacci retracement of the decline from $0.1790 to $0.1422. The bulls might target a major stop at the $0.1720 mark if momentum builds.
3- Further Decline Risk for DOGE Price
Conversely, if DOGE fails to maintain its rise above the $0.1550 resistance, it may face another downturn. Initial support is found at the $0.1480 level, followed closely by $0.1420. The critical support zone is at $0.1400; a breach here could lead to a more significant decline toward $0.1320 or even $0.1300 in the near future.
4- DOGE Technical Indicators
The hourly MACD for DOGE/USD shows diminishing momentum within the bearish zone, while the RSI remains above the 60 threshold, suggesting a cautious optimism. Key support levels to watch include $0.1480 and $0.1420, while significant resistance levels stand at $0.1565 and $0.1580.
In conclusion, Dogecoin (DOGE) is currently at a pivotal point, navigating through key resistance and support levels that will significantly influence its future price trajectory. While the potential for a fresh increase exists if DOGE can break through the $0.1565 and $0.1580 resistances, the risk of further declines remains if these levels are not surpassed. Investors should closely monitor technical indicators and market trends to make informed decisions, as Dogecoin's movement in the coming days will be critical in determining its overall direction in the volatile cryptocurrency market.
