Market
Dogecoin (DOGE) Plunges to $0.20: Is This the Bottom or More Pain Ahead?
Dogecoin declined heavily below the $0.280 support against the US Dollar. DOGE is now recovering and might face hurdles near $0.270.
- DOGE price started a fresh decline below the $0.2850 and $0.2650 support levels.
- The price is trading below the $0.280 level and the 100-hourly simple moving average.
- There is a major bearish trend line forming with resistance at $0.270 on the hourly chart of the DOGE/USD pair (data source from Kraken).
- The price could start another increase if it clears the $0.250 and $0.270 resistance levels.
Dogecoin Price Dives 30%
Dogecoin price started a fresh decline from the $0.3250 resistance zone, like Bitcoin and Ethereum. DOGE dipped below the $0.300 and $0.2750 support levels. It even spiked below $0.220.
The price declined over 25% and tested the $0.20 zone. A low was formed at $0.20 and the price is now rising. There was a move above the 23.6% Fib retracement level of the downward move from the $0.3416 swing high to the $0.20 low.
Dogecoin price is now trading above the $0.280 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.250 level. The first major resistance for the bulls could be near the $0.260 level.
The next major resistance is near the $0.270 level or the 50% Fib retracement level of the downward move from the $0.3416 swing high to the $0.20 low. There is also a major bearish trend line forming with resistance at $0.270 on the hourly chart of the DOGE/USD pair.
A close above the $0.270 resistance might send the price toward the $0.2880 resistance. Any more gains might send the price toward the $0.30 level. The next major stop for the bulls might be $0.320.
Another Decline In DOGE?
If DOGE’s price fails to climb above the $0.250 level, it could start another decline. Initial support on the downside is near the $0.2250 level. The next major support is near the $0.2150 level.
The main support sits at $0.20. If there is a downside break below the $0.20 support, the price could decline further. In the stated case, the price might decline toward the $0.1880 level or even $0.1650 in the near 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 – $0.2250 and $0.2150.
Major Resistance Levels – $0.2500 and $0.2700.