Crypto friends, pay attention! Recently, Dogecoin (DOGE) has started another wave of "roller coaster trend," with ups and downs that make your heart race. Want to know its current direction? Let's analyze it in the simplest way so that even newcomers can understand it instantly!

Firstly, Dogecoin attempted a small rebound around $0.240, following the footsteps of Bitcoin and Ethereum, briefly breaking above $0.2420. The bulls seemed to have some momentum, with the price even surging to $0.2430, forming a small peak. But soon after, the decline came again—the price fell from the peak, breaking below the supports at $0.240 and $0.2350, even retracing to the middle level of the upward trend (the 50% Fibonacci retracement level from the low of $0.2163 to the high of $0.2430).

This means that the short-term upward momentum is somewhat tight, and bears are starting to exert pressure in the market. From the hourly chart of DOGE/USD, it has already broken below the key ascending channel, with support around $0.2295. More excitingly, Dogecoin is now priced below $0.2320, while also falling below the 100-hour Simple Moving Average (SMA). This puts the bulls in a somewhat awkward position—wanting to pull back the rise requires some patience and market support.

Where is the bulls' protective line?

Although the market is somewhat turbulent, the bulls are not completely stunned. From the low point of $0.2163 to the high point of $0.2430, the 76.4% Fibonacci retracement level has become their defensive line. If Dogecoin can stabilize here, the possibility of a rebound in the future is still very high.

The upward resistance levels are gradually becoming clear: the first major resistance in the short term is around $0.2295, while a slightly stronger resistance is at $0.2320. If DOGE's closing price can break above $0.2420, the next stop may soar to $0.250, and possibly even test $0.2650. For the bulls, this is undoubtedly a hopeful rebound path.

But don't forget, the market is ever-changing. If the price cannot break above $0.2320, the bulls' efforts may be hindered, and Dogecoin could continue to decline. The initial support on the downside is at $0.2220, and if it falls further, the next major support level is at $0.2165. The key support level is at $0.2150. If this level is broken, the price could slide to $0.2050, or even $0.2020 in the short term, and the power of the bears should not be underestimated!

How to read the technical indicators?

Looking at the technical indicators, the current hourly MACD for DOGE shows it is still in the bearish zone but has some recovery momentum. This means that the bears are dominant in the short term, but the upward space is not completely closed off.

Looking at the RSI (Relative Strength Index), DOGE's RSI is currently below 50, indicating that there is insufficient buying power and market sentiment is leaning towards wait-and-see or caution, which is also a reason for the short-term decline.

Summarizing the key points:

  • Main support levels: $0.2165, $0.2150

  • Main resistance levels: $0.2320, $0.2420

  • Key short-term levels: $0.2295 (bulls' protective line), $0.250 (breakout potential)

Strategy guide

If you are a novice investor, don't be scared by short-term fluctuations. You can focus on a few core ideas:

  • Hold the key support: if DOGE can stay above $0.2165, the bulls still have a chance to launch a counterattack.

  • Focus on breaking resistance: if the price breaks above $0.2420, the short-term target could be $0.250 or even higher, but don't forget to set profit-taking and stop-loss.

  • Patient observation: technical indicators show that the market still has uncertainty in the short term, maintaining a wait-and-see approach or participating with small positions is a prudent strategy.

In summary, the recent trend of Dogecoin is akin to a roller coaster—ups, downs, key supports, and resistance levels intertwining with bulls and bears. If you can catch the rhythm, there are still opportunities for a rebound in the short term, but breaking below key support could also empower the bears. Newcomers in the crypto space should remain calm, understand how to operate in batches and manage risk, to thrive in this wave of volatility.

Are you ready for the roller coaster trend of Dogecoin? Hold the support and welcome the next wave of impact!