Dogecoin (DOGE) Dips: A Warning Sign or A Hidden Opportunity?

Dogecoin started a fresh decline below the $0.350 zone against the US Dollar. DOGE is now consolidating and might recover if it clears the $0.3350 resistance.

• DOGE price started a fresh decline below $0.3550 and $0.350.
• The price is trading below the $0.350 level and the 100-hourly simple moving average.
• There is a connecting bearish trend line forming with resistance at $0.3350 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could gain momentum if it clears the $0.3350 and $0.3420 resistance levels.

Dogecoin Price Turns Red

Dogecoin price started a fresh decline after it failed to surpass $0.40, like Bitcoin and Ethereum. DOGE declined below the $0.3650 and $0.350 support levels to enter a short-term bearish zone.

There was a move below the $0.3250 support. A low was formed at $0.3143 and the price is now attempting a recovery wave. There was a move above the $0.3250 resistance but the price is still below the 23.6% Fib retracement level of the downward move from the $0.3981 swing high to the $0.3143 low.

Dogecoin price is now trading below the $0.340 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.3350 level. There is also a connecting bearish trend line forming with resistance at $0.3350 on the hourly chart of the DOGE/USD pair.

The first major resistance for the bulls could be near the $0.340 level. The next major resistance is near the $0.350 level or the 50% Fib retracement level of the downward move from the $0.3981 swing high to the $0.3143 low.

A close above the $0.350 resistance might send the price toward the $0.3620 resistance. Any more gains might send the price toward the $0.380 level. The next major stop for the bulls might be $0.40.

Another Decline In DOGE?

If DOGE’s price fails to climb above the $0.3350 level, it could start another decline. Initial support on the downside is near the $0.320 level. The next major support is near the $0.3150 level.

The main support sits at $0.30. If there is a downside break below the $0.30 support, the price could decline further. In the stated case, the price might decline toward the $0.2850 level or even $0.2720 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 – $0.320 and $0.3150.

Major Resistance Levels – $0.3350 and $0.3400.