Key Takeaways:
- Dogecoin price started a major decline from the $0.20 resistance.
- DOGE was trading below a major upward channel with support at $0.140 on the daily chart.
- The price can find strong bids near the $0.120 support or the 50-day simple moving average (blue).
New Delhi (CoinChapter.com) — DOGE is falling below $0.150. Dogecoin price should stay above $0.100 to start a new rally in the current cycle.
Dogecoin Price Adjustment Profit
In our last technical analysis, we discussed the main reasons why Dogecoin could surge to $0.20. DOGE gained bullish momentum above the $0.150 and $0.160 resistance levels. It surpassed Bitcoin and tested the $0.20 resistance area.
A new multi-month high was formed at $0.2059 and the price recently began a downward correction. There was a sharp decline below the $0.1720 and $0.1650 support levels. The bears pushed the price below the 50% Fib retracement level of the upward move from the $0.0731 swing low to the $0.2059 swing high.
More importantly, Dogecoin was trading below the main upward channel with support at $0.140 on the daily chart. Currently, the decline below the $0.140 support zone is accelerating.
The first major support for the downside is near the $0.1240 level. It is close to the 61.8% Fib retracement level, rising from the $0.0731 swing low to the $0.2059 swing high. Key support is currently forming around the $0.100 area or the 50-day simple moving average (blue).
DOGE bulls may take a strong position near the 50-day simple moving average (DSMA) or $0.100. Failure to defend $0.10 support could result in large losses. If indicated, bears could target the downside towards the $0.0740 pivot level.
A new increase in DOGE?
Conversely, Dogecoin could find support near $0.1240 or $0.100 and then begin a new bullish run. The first upward resistance is at $0.140. A break above the $0.140 resistance could begin a steady rise.
If indicated, the price may cross the $0.1550 resistance and test $0.1620. Any more profits could push the price towards the $0.200 hurdle.
Overall, DOGE is gaining bearish momentum below the $0.140 support. However, Dogecoin bulls may appear near the $0.1240 area or $0.100. Otherwise, the price may drop to $0.0740 in the coming days.