Dogecoin (DOGE) Rally on Hold: Can Momentum Kick Back In?

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As an analyst with over two decades of experience in the financial markets, I have seen countless trends and cycles come and go. While Dogecoin‘s recent correction may be concerning to some, it is important to remember that such corrections are a normal part of market behavior.

Dogecoin has initiated a decline that’s pushing below its support level at around $0.400 USD, but it’s currently holding steady in a consolidation phase. Potentially, it could be gearing up for another upward push surpassing the $0.4050 mark.

  • DOGE price started a fresh decline below the $0.40 level.
  • The price is trading below the $0.4050 level and the 100-hourly simple moving average.
  • There is a connecting bullish trend line forming with support at $0.3950 on the hourly chart of the DOGE/USD pair (data source from Kraken).
  • The price could start another rally if it clears the $0.4050 and $0.4150 resistance levels.

Dogecoin Price Eyes Fresh Increase

The price of Dogecoin began a new drop, higher than $0.410, while Bitcoin and Ethereum did not follow this trend. Dogecoin’s value dipped beneath the support levels at $0.4020 and $0.400, and even fell below $0.3980 momentarily.

At a price point of $0.3963, a dip occurred and now the price is holding steady, offsetting some losses. It managed to rise slightly above $0.40. It has moved beyond the 23.6% Fibonacci retracement level, which marks a significant point in the downward trend from the high of $0.4136 to the low of $0.3963.

Currently, Dogecoin’s price is hovering under the $0.4050 mark and slightly below its 100-hour moving average. Moreover, a potential uptrend line with support at $0.3950 is being formed on the hourly Dogecoin-to-USD chart, indicating a possible bullish trend.

Immediately, you might find strong opposition when prices rise around $0.4025. The initial significant barrier for buyers could be at approximately $0.4050. Another notable resistance is seen around $0.4095 or the 76.4% Fibonacci retracement level from the price drop between $0.4136 high and $0.3963 low.

If the price breaks through the $0.4095 barrier, it could climb up to the $0.4150 resistance level. Further gains could potentially push the price towards the $0.4350 mark. The next significant target for bulls could be at $0.4500.

More Losses In DOGE?

Should the value of DOGE not surpass $0.4050, there’s a possibility for another drop in price. A potential first line of defense on the downside lies at approximately $0.3980. The subsequent significant support is anticipated near $0.3950 level.

The crucial level of resistance lies at $0.3750. If this level is broken and prices fall, they may continue to decrease, potentially reaching around $0.350 or even $0.3420 in the immediate future.

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 – $0.3980 and $0.3750.

Major Resistance Levels – $0.4050 and $0.4095.

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2024-12-17 08:10