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Dogecoin (DOGE) Makes U-Turn, Why This Support Might Start Fresh Increase

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Doegcoin DOGE
08
Nov

Dogecoin declined heavily from the $0.160 resistance against the US Dollar. DOGE could start a fresh increase if it stays above the $0.090 support zone.

  • DOGE topped near the $0.160 zone and started a fresh decline against the US dollar.
  • The price is trading well above the $0.0700 zone and the 100-day simple moving average.
  • There was a break below a key rising channel with support near $0.1180 on the daily chart of the DOGE/USD pair (data source from Kraken).
  • The pair must stay above the $0.090 support zone to avoid more losses.

Dogecoin Trims Gains

In the past few days, dogecoin saw a strong bullish wave above the $0.070 resistance zone. DOGE rallied significantly above the $0.100 resistance, outpacing bitcoin and ethereum.

The bulls were able to pump the price above the $0.12 resistance zone. Finally, there was a spike above the $0.15 level. The price traded as high as $0.1609 and recently started a downside correction. There was a clear move below the $0.142 and $0.135 support levels.

Doge price declined below the 50% Fib retracement level of the upward move from the $0.0551 swing low to $0.1609 high. Besides, there was a break below a key rising channel with support near $0.1180 on the daily chart of the DOGE/USD pair.

The price is now testing a major support zone at $0.0955. It is near the 61.8% Fib retracement level of the upward move from the $0.0551 swing low to $0.1609 high.

Source: DOGEUSD on TradingView.com

If there is a downside break below the $0.0955 support, the price could correct further. The main support is forming near the $0.0900 and $0.0895 levels. Any more losses could open the doors for a move towards the $0.0550 level.

Fresh Increase in DOGE?

If DOGE price remains stable above the $0.0955 support, there are chances of a fresh increase. An initial resistance on the upside is near the $0.1150 level.

The first major resistance is near the $0.1200 level. Any more gains above the $0.1200 zone could encourage the bulls to aim a test the important $0.135 level.

Technical Indicators

4-Hours MACD – The MACD for DOGE/USD is now gaining momentum in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now near the 50 level.

Major Support Levels – $0.0955, $0.0900 and $0.0550.

Major Resistance Levels – $0.1150, $0.1200 and $0.1350.

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