Dogecoin (DOGE) Rally on Hold: Can Momentum Kick Back In?

Dogecoin started a downside correction below the $0.400 support against the US Dollar. DOGE is now consolidating and might aim for a fresh increase above $0.4050.

• DOGE price started a fresh decline below the $0.40 level.
• The price is trading below the $0.4050 level and the 100-hourly simple moving average.
• There is a connecting bullish trend line forming with support at $0.3950 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could start another rally if it clears the $0.4050 and $0.4150 resistance levels.

Dogecoin Price Eyes Fresh Increase

Dogecoin price started a fresh decline from well above $0.410 unlike Bitcoin and Ethereum . DOGE traded below the $0.4020 and $0.400 support levels. It even spiked below $0.3980.

A low was formed at $0.3963 and the price is now consolidating losses. It recovered some points and climbed above $0.40. It surpassed the 23.6% Fib retracement level of the downward move from the $0.4136 swing high to the $0.3963 low.

Dogecoin price is now trading below the $0.4050 level and the 100-hourly simple moving average. There is also a connecting bullish trend line forming with support at $0.3950 on the hourly chart of the DOGE/USD pair.

Immediate resistance on the upside is near the $0.4025 level. The first major resistance for the bulls could be near the $0.4050 level. The next major resistance is near the $0.4095 level or the 76.4% Fib retracement level of the downward move from the $0.4136 swing high to the $0.3963 low.

Source: DOGEUSD on TradingView.com

A close above the $0.4095 resistance might send the price toward the $0.4150 resistance. Any more gains might send the price toward the $0.4350 level. The next major stop for the bulls might be $0.4500.

More Losses In DOGE?

If DOGE’s price fails to climb above the $0.4050 level, it could start another decline. Initial support on the downside is near the $0.3980 level. The next major support is near the $0.3950 level.

The main support sits at $0.3750. If there is a downside break below the $0.3750 support, the price could decline further. In the stated case, the price might decline toward the $0.350 level or even $0.3420 in the near term.

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 – $0.3980 and $0.3750.

Major Resistance Levels – $0.4050 and $0.4095.