Dogecoin is undergoing a new downward correction as it fails to maintain upward momentum above the resistance level of $0.240. After reaching a short-term peak of $0.2430, the bears quickly gained dominance, pulling the price below key support levels. Currently, DOGE is accumulating around the $0.2250 area, and the risk of a deeper decline still exists.
Recent Price Movements of DOGE
The price of Dogecoin began to weaken after failing to break sustainably above the $0.2420 mark.
DOGE fell below the levels of $0.240 and $0.2350, while also breaking the upward trend channel with support at $0.2295 on the hourly chart (data source: Kraken).
Currently, DOGE is trading below $0.2320 and the 100-hour simple moving average.
Buying pressure is trying to defend the Fibonacci retracement level of 76.4% (calculated from the bottom of $0.2163 to the peak of $0.2430).
Important Resistance Level
If the price recovers, DOGE will face significant resistance levels thereafter:
Nearest resistance: $0.2295.
Major resistance: $0.2320 – if this level is surpassed, the bulls may regain momentum.
Extended resistance: $0.2420 – a decisive break could open up an upward direction to $0.250 and further to $0.2650 - $0.2780.
Support Zone to Watch
In the event that DOGE fails to surpass $0.2320, the downward trend may continue:
Initial support: $0.2220.
Key support: $0.2165 and $0.2150. This is the decision zone to keep the price from falling deeper.
If the $0.2150 mark is broken, DOGE risks dropping to $0.2050 or even $0.2020 in the short term.
Technical Indicators
MACD (hourly chart): is increasing in slope in the decline area, indicating that selling pressure remains strong.
RSI (relative strength index): is below 50, confirming an advantage leaning towards the bears.
Conclusion
Currently, Dogecoin is in an accumulation phase after a sharp decline and is facing the important support levels of $0.2165 - $0.2150. If this zone is broken, DOGE may slide further down to $0.2050. Conversely, to recover back to an upward trend, the price needs to quickly surpass the resistances of $0.2320 and $0.2420.
👉 Investors should closely monitor the price reaction at the support level of $0.2165, as this is the key point that will determine DOGE's next direction in the short term.