Dogecoin (DOGE) Dips: A Warning Sign or A Hidden Opportunity?

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Dogecoin has dropped again below the 0.350 USD mark, but could potentially regain its footing if it manages to surpass the 0.3350 USD resistance level. At the moment, Dogecoin is holding steady in consolidation.

  • DOGE price started a fresh decline below $0.3550 and $0.350.
  • The price is trading below the $0.350 level and the 100-hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance at $0.3350 on the hourly chart of the DOGE/USD pair (data source from Kraken).
  • The price could gain momentum if it clears the $0.3350 and $0.3420 resistance levels.

Dogecoin Price Turns Red

The cost of Dogecoin dropped anew as it struggled to exceed 0.40 dollars, similar to Bitcoin and Ethereum. Subsequently, Dogecoin dipped below the 0.3650 and 0.350 support levels, moving into a temporary bearish phase.

Recently, the price dipped slightly beneath the $0.3250 support, reaching a low at $0.3143. Now, it seems like an upward correction is being attempted. However, despite moving above the $0.3250 resistance, the price still remains below the 23.6% Fibonacci retracement level derived from the downward swing between the high of $0.3981 and the low of $0.3143.

Currently, Dogecoin’s price is dipping below the $0.340 mark and the 100-hour moving average. If it aims to rise, there’s initial resistance at approximately $0.3350. Moreover, a bearish trend line is being formed on the hourly chart of DOGE/USD pair, with potential resistance at $0.3350 as well.

The bulls might face their first significant obstacle around the $0.340 price point. The subsequent challenge could be at the $0.350 level, which is also approximately the halfway point (50% Fibonacci retracement) of the fall from the peak of $0.3981 to the trough of $0.3143.

If the price breaks through the $0.350 barrier, it could move up to the $0.3620 resistance level. Continued growth may then push the price towards $0.380. The bulls’ next significant target could be at $0.40.

Another Decline In DOGE?

If Dogecoin’s value doesn’t manage to rise beyond $0.3350, there might be a fresh drop in its price. A potential floor for this decline could form around $0.320. The subsequent strong support is expected at approximately $0.3150.

The crucial point of resistance lies at approximately $0.30. If this level is breached and broken downward, it could lead to a potential drop in price. In such a scenario, the value might trend lower towards around $0.2850 or even potentially reach $0.2720 in the short term.

Technical Indicators

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

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.

Major Support Levels – $0.320 and $0.3150.

Major Resistance Levels – $0.3350 and $0.3400.

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2025-01-10 08:28