Doge Turns Red, Can This Support Save The Bulls?

Dogecoin started a fresh decline from $0.0950 against the US Dollar. DOGE is declining but the $0.080 support might protect more downsides.

• DOGE failed to clear $0.0950 and started a fresh decline against the US dollar.
• The price is trading below the $0.088 zone and the 100 simple moving average (4 hours).
• There was a break below a major bullish trend line with support near $0.0855 on the 4-hours chart of the DOGE/USD pair (data source from Kraken).
• The pair could decline further if there is a move below $0.080.

Dogecoin Price Extends Losses

After a steady increase, Dogecoin’s price faced resistance near $0.0950. DOGE formed a high near $0.0950 and started a fresh decline, similar to Bitcoin and Ethereum.

There was a clear move below the $0.0850 support and the 100 simple moving average (4 hours). Besides, there was a break below a major bullish trend line with support near $0.0855 on the 4-hours chart of the DOGE/USD pair.

A low is formed near $0.0825 and the pair is now consolidating losses. On the upside, the price is facing resistance near the $0.0855 level. It is close to the 23.6% Fib retracement level of the recent decline from the $0.0950 swing high to the $0.0825 low.

Source: DOGEUSD on TradingView.com

The next major resistance is near the $0.088 zone and the 100 simple moving average (4 hours). It coincides with the 50% Fib retracement level of the recent decline from the $0.0950 swing high to the $0.0825 low. A close above the $0.0885 resistance might send the price toward the $0.092 resistance. The next major resistance is near $0.0950. Any more gains might send the price toward the $0.100 level.

More Losses in DOGE?

If DOGE’s price fails to gain pace above the $0.0855 level, it could continue to move down. Initial support on the downside is near the $0.0825 level.

The next major support is near the $0.080 level. If there is a downside break below the $0.080 support, the price could decline further. In the stated case, the price might decline toward the $0.0765 level.

Technical Indicators

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

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

Major Support Levels – $0.0825, $0.080, and $0.0765.

Major Resistance Levels – $0.0855, $0.0880, and $0.095.