Affected by cautious sentiment among investors ahead of Federal Reserve Chairman Powell's speech, major cryptocurrencies fell on Thursday. Dogecoin (DOGE) is no exception, currently oscillating in the $0.21-$0.23 range, but its user base continues to grow, with on-chain data showing that the number of non-zero balance addresses has exceeded 8 million.
Recently, DOGE price has experienced a new round of decline.
After closing below $0.240, Dogecoin sequentially lost support levels at $0.2320 and $0.2250, dipping as low as $0.2078, and is currently consolidating its losses.
Although there was a slight rebound above the 23.6% Fibonacci retracement level of the recent downward trend (from $0.2430 to $0.2078), the price remains below $0.2250 and the 100-hour simple moving average, with a bearish trend line forming a resistance level at $0.220 on the hourly chart.
Looking at the subsequent trend:
If it can rebound and break through, the first key resistance is at $0.2250 (close to the 50% Fibonacci retracement level of the aforementioned decline), then up to $0.2320. If the closing price breaks above here, it may surge to $0.2450 or even $0.2550.
If it fails to break through $0.2250, it may continue to decline, with initial support at $0.2120 and key support at $0.2050. If it breaks below this, it may drop to $0.20 or even $0.1920 in the short term.
Regarding technical indicators:
The hourly MACD continues to strengthen in the bearish zone, and the RSI is below 50; the main support levels are $0.2120 and $0.2050, while the main resistance levels are $0.2250 and $0.2320.
It is worth noting that analysts point out that Dogecoin is forming a symmetrical triangle. This is a typical sign of a breakout.
Reason: After breaking through the resistance level last week, it entered a consolidation phase, with bulls and bears in a stalemate, reduced trading volume, and a narrowing range. There may be around 40% volatility in either direction. However, the direction is not yet clear, and such triangular patterns typically do not last long.
