Dogecoin (DOGE) has recently undergone a corrective phase after peaking near the $0.180 level against the US Dollar. Following this high, the cryptocurrency faced downward pressure, dipping as low as $0.1422 before initiating a recovery.
Initially, Dogecoin’s price struggled to maintain momentum as it fell beneath the $0.1650 support level and the 100-hourly simple moving average. A significant bearish trend line can be noted, presenting resistance near the $0.1580 level. For a more robust bullish reversal, DOGE would need to break above both the $0.1550 and $0.1580 resistance levels.
The price action indicates that Dogecoin’s recent attempt to rally pushed above the $0.150 level, aided by a recovery that crossed the 23.6% Fibonacci retracement level from the recent high of $0.1790 to the low of $0.1422. However, with current trading below $0.1550, the upside remains restrained. A decisive close above the $0.1580 resistance might propel the price toward the $0.1600 range, with further increases potentially targeting the $0.1650 level and the 61.8% retracement of the noted downward move. A significant goal for bullish traders could be the $0.1720 area.
Conversely, if Dogecoin fails to breach the $0.1550 resistance, the possibility of another downward trend looms. Immediate support is observed at $0.1480, followed closely by the $0.1420 area. Should the price decline below $0.1400, it could further nosedive toward $0.1320 or even $0.1300 in the near term.
On the technical front, the hourly MACD for DOGE/USD shows signs of weakening momentum within the bearish zone, while the Relative Strength Index (RSI) is presently positioned above the neutral level at 50. This creates a mixed outlook as the market weighs potential recoveries against the risks of further declines.
