Dogecoin’s Rally Ride: DOGE Hang On Tight or Prepare to Bark!

As an experienced financial analyst, I have closely observed the Dogecoin (DOGE) market’s recent price action against the US Dollar (USD). Based on the current chart patterns and trends, it appears that DOGE has corrected its gains and is now forming a base around the $0.1620 support zone.

The price of Dogecoin adjusted its advance and touched the $0.1620 mark versus the U.S. dollar. Dogecoin is currently establishing a foundation and may instigate a new rise surpassing $0.1680.

    DOGE price declined and tested the key support at $0.1620.
    The price is trading below the $0.1650 level and the 100-hourly simple moving average.
    There is a key bearish trend line forming with resistance at $0.1685 on the hourly chart of the DOGE/USD pair (data source from Kraken).
    The price must settle above $0.170 to move into a positive zone and start a fresh surge.

Dogecoin Price Holds Support

Following a consistent upward trend, Dogecoin’s price encountered resistance around the $0.1750 mark. The most recent peak was reached at $0.1705 prior to DOGE undergoing a decline similar to Bitcoin and Ethereum. The value dipped below the $0.1650 support threshold.

As an analyst, I’ve observed that Dogecoin (DOGE) formed a low at $0.1620 and has been consolidating since then. Currently, DOGE is trading beneath the $0.1650 mark and the 100-hour SMA. On the upside, the resistance level lies around $0.1664, which also happens to be near the 50% Fibonacci retracement level of the downward move from the $0.1705 swing high to the $0.1620 low.

The next significant barrier for Dogecoin’s price lies around the $0.1685 mark or the 76.4% Fibonacci retracement point in the pullback from the $0.1705 peak to the $0.1620 trough. Additionally, a bearish trendline is emerging on the hourly chart of DOGE/USD, with resistance at the $0.1685 level.

Dogecoin’s Rally Ride: DOGE Hang On Tight or Prepare to Bark!

If the price breaks above the $0.1685 resistance, it could potentially push the value up towards the next resistance at $0.1725. Any further advancements may cause the price to approach the significant level of $0.1750. The bulls’ next major objective could lie at $0.1800.

More Losses In DOGE?

If the price of DOGE doesn’t pick up speed and surpass the $0.1685 mark, there’s a risk it may slide downward once more. The bottom support can be found around the $0.1620 threshold.

If we reach the next significant resistance at around $0.1550, and the price falls below this level, there’s a strong possibility that it will continue to drop. In such a scenario, the price could potentially slide down to approximately $0.1520.

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 – $0.1620, $0.1550 and $0.1520.

Major Resistance Levels – $0.1660, $0.1685, and $0.1720.

Read More

2024-05-30 05:49