Dogecoin (DOGE) Slips: Can Bulls Rally at The Support Line?

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As a seasoned researcher who’s witnessed the crypto market’s rollercoaster ride since its inception, I find myself observing the Dogecoin price action with a mix of curiosity and caution. The recent dip below $0.400 is reminiscent of the unpredictable nature of this meme-based coin.

Dogecoin has seen a steep decline, dropping below the $0.400 support level versus the U.S. dollar. At present, Dogecoin’s value hovers around the $0.3750 support level and may soon rebound.

  • DOGE price started a fresh decline below the $0.420 level.
  • The price is trading below the $0.40 level and the 100-hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance at $0.4260 on the hourly chart of the DOGE/USD pair (data source from Kraken).
  • The price could start another rally if it clears the $0.420 and $0.4250 resistance levels.

Dogecoin Price Dips To Support

As an analyst, I observed that the price of Dogecoin initiated a new downtrend, surpassing the $0.440 mark similar to Bitcoin and Ethereum. The value of DOGE dipped below significant support levels at $0.4120 and $0.400. In fact, it even plunged briefly below the $0.3880 threshold.

The price had dropped to $0.3749 and is currently holding steady, recovering slightly and rising above $0.3850. It reached the 23.6% Fibonacci retracement level of the decline that started at the peak of $0.4777 down to the trough of $0.3749.

Currently, Dogecoin’s price is falling below the $0.4250 mark and its 100-hour moving average. If it wants to rise again, an immediate barrier it might face is around $0.4080. However, a significant resistance for a bullish trend could be found at $0.4250.

On the hourly chart for the DOGE/USD pair, a bearish trend line is forming and approaching the potential resistance point at approximately $0.4260. This level is near the 50% Fibonacci retracement mark of the downward price movement from the peak at $0.4777 to the trough at $0.3749.

Approaching levels of potential resistance can be found near $0.4550. If the price manages to surpass this resistance at $0.4550, it could push toward another resistance at $0.4650. Continued gains might lead to a target of $0.5000. The bulls may find their next significant obstacle around $0.5200.

More Losses In DOGE?

As a crypto investor, if DOGE’s price doesn’t manage to break through the $0.4250 mark, it might initiate another drop. In such a case, initial support could be found around the $0.3880 level. Further down, significant support lies at approximately $0.3750.

If the key support at $0.3650 is breached downward, the price may drop significantly. This could potentially lead to a fall towards the $0.3420 mark, and possibly even reach $0.3250 in the short term, if the current trend continues.

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 – $0.3880 and $0.3750.

Major Resistance Levels – $0.4080 and $0.4250.

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2024-12-10 08:12