Dogecoin extended its losses and traded below the $0.1350 resistance zone against the US Dollar. DOGE is currently testing important support at $0.1200.
- DOGE gained bearish momentum below the $0.140 and $0.1350 levels against the US Dollar.
- The price is trading below the $0.1350 level and the 100 simple moving average (4-hours).
- A major downtrend line is forming with resistance at $0.1350 on the 4-hour chart of the DOGE/USD pair (data source from Kraken).
- The price must settle above $0.1420 to enter a positive zone and start a further rise.
Dogecoin price extends losses
After closing below $0.150, Dogecoin price extended its losses and entered a short-term bearish zone, as Bitcoin And Ethereum. There was a decline below the $0.1350 support zone.
A low formed at $0.1201 and DOGE is now consolidating its losses. There was a slight wave of recovery above the $0.1250 level. The price tested the 23.6% Fib retracement level of the downward move from the $0.1640 high to $0.1201 low.
However, the bears protected more gains above the $0.130 resistance. Dogecoin is also below the $0.1420 level and the 100 simple moving average (4-hours). On the upside, the price faces resistance near the $0.130 level.
Source: DOGEUSD on TradingView.com
The next major resistance is near the $0.1350 level. There is also a major downtrend line forming with resistance at $0.1350 on the 4-hour chart of the DOGE/USD pair. The main obstacle lies at $0.1420. A close above the $0.1420 resistance and the 50% Fibonacci retracement level of the downward move from the $0.1640 high to $0.1201 low could send the price towards the resistance of $0.1550. Any further gains could push the price towards the $0.1620 level.
More losses in DOGE?
If DOGE price fails to rise above the $0.1350 level, it could begin a further decline. Initial support on the downside is near the $0.1220 level.
The next major support is near the $0.120 level. If there is a downward break below the $0.120 support, the price could decline further. In the indicated case, the price could decline to the level of $0.1040.
Technical indicators
4-hour MACD – The MACD for DOGE/USD is now gaining momentum in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.
Key support levels – $0.1240, $0.1200 and $0.1040.
Major resistance levels – $0.1300, $0.1350 and $0.1420.
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