Dogecoin has been experiencing a downward correction after reaching a peak around $0.4050 against the US Dollar. Currently, the cryptocurrency is consolidating its losses and appears poised for a potential rebound if it manages to surpass the resistance levels at $0.3680.
The recent decline in Dogecoin’s price was marked by a dip below key support levels of $0.400 and $0.380. It even fell beneath the $0.350 level, hitting a low of approximately $0.3380. As of now, the price remains under the 23.6% Fibonacci retracement level of its recent downtrend, which has stretched from the $0.3860 swing high to the low established at $0.3380. A bearish trend line is also forming, establishing resistance at the $0.3650 level.
Trading below the $0.3750 level and the 100-hourly simple moving average, Dogecoin faces immediate resistance around the $0.3650 level along with the outlined trend line. For a bullish outlook, a break above the $0.3680 level — or the 61.8% Fibonacci retracement targeted from the $0.3860 high to the $0.3380 low — will be essential. The next significant resistance to watch for lies at $0.3750, which, if cleared, could propel Dogecoin toward the $0.3860 region with prospects of reaching the $0.40 level.
Conversely, if Dogecoin fails to rally past the $0.3750 resistance, an additional downturn could ensue. The initial support is located near the $0.340 level, followed by a critical support level at $0.3380. Should there be a break below this, the primary support area is around $0.3250. A significant drop under this threshold could lead to a decline towards levels near $0.3020 or even $0.300.
Technical indicators reveal that the MACD is gaining strength in the bearish territory, with the RSI currently positioned below the neutral level of 50, indicating that bearish momentum may persist in the short term.
