Dogecoin (DOGE) has recorded an impressive recovery surpassing the mark of $0.2320 against the USD, however, this uptrend is gradually weakening as the price has now turned back down to around $0.2180. Is this recent price increase just a "flash" or does DOGE still have growth potential?

Recent developments of DOGE

Dogecoin has bounced back after finding support around $0.2110 — similar to the recovery of Bitcoin and Ethereum. Subsequently, DOGE broke through the important resistance level of $0.220 and even surpassed the mark of $0.2320. However, sellers quickly entered the market as the price reached the strong resistance area of $0.2380. The price peaked at $0.2378 before reversing back down.

The increase from the bottom of $0.2109 to the peak of $0.2370 has now retraced below the 50% Fib retracement level, indicating that corrective pressure is prevailing in the short term.

Currently, the price of DOGE is below the 100-hour simple moving average (SMA 100) and below the resistance area of $0.2250.

Technical analysis

On the hourly chart of the DOGE/USD pair, there is a short-term upward trend line with support located at $0.220. This is a level that buyers need to protect if they do not want DOGE to drop further.

  • Nearby resistance: $0.2250 — the first resistance level if DOGE wants to recover.

  • Important resistance: $0.2320 — the price level that, if surpassed, DOGE could advance to the area of $0.2380.

  • Next strong resistance: $0.2380 — if broken, DOGE has the potential to move towards $0.250 and further to $0.2720 - $0.2850.

Negative scenario: Will DOGE continue to decline?

If DOGE cannot maintain above the level of $0.2320, the price may continue to adjust. Initial support will be $0.220 — coinciding with the rising trend line. If this level is breached, DOGE could drop to $0.2170, corresponding to the 76.4% Fib retracement level of the previous increase.

  • Main support: $0.2120 — if DOGE breaks this level, a sell-off could pull the price back to $0.2000, even $0.1880 in the short term.

Technical indicators

  • MACD (Hourly Chart): Gradually shifting into negative territory, indicating that the upward momentum is weakening.

  • RSI (Hourly Chart): Below the 50 threshold — a neutral to negative signal.

Summary

Although DOGE is still holding support on the rising trend line at $0.220, corrective pressure is still present. If it does not soon reclaim the $0.2320 mark, a deeper decline is entirely possible. Investors should closely monitor the area of $0.220 - $0.2120 to determine the next trend.