Dogecoin’s price has experienced a pullback from $0.400, falling against the US Dollar but showing signs of stabilization. If DOGE manages to stay above critical support levels like $0.3350, the meme coin could stage a significant recovery in the coming sessions.
Current Market Outlook
DOGE has declined below $0.3880 and $0.3650, with the price now trading under $0.3550 and the 100-hour SMA. The DOGE/USD hourly chart highlights a bearish trend line, with resistance near $0.3520, which serves as the immediate challenge for the bulls to overcome.
To regain momentum, Dogecoin must break through the resistance levels at $0.3520 and $0.3550. A successful breach could set the stage for further upward movement.
Support Levels and Potential Rebound
After falling from $0.400, Dogecoin found support at $0.3416. Currently, it is consolidating losses below the 23.6% Fibonacci retracement level of the move from the swing high at $0.4014 to the low of $0.3416.
Key Support Levels:
Immediate support lies at $0.3420.
Stronger support is positioned near $0.3380.
A breakdown below $0.3250 could trigger further declines toward $0.3020 or even $0.3000.
Upside Potential:
A breakout above $0.3550 would provide the first sign of recovery.
The next major hurdle is $0.3720, corresponding to the 50% Fibonacci retracement level of the previous decline.
A close above $0.3720 could propel DOGE to $0.3860 and potentially retest $0.4000, with the next target at $0.4200.
Technical Indicators
MACD (Hourly): The MACD for DOGE/USD is turning negative, signaling weakening momentum.
RSI (Hourly): The RSI is below 50, indicating bearish conditions but with room for potential upside.
Key Takeaways
Dogecoin’s price remains under pressure, but breaking above the $0.3550 resistance level could open the door to a strong recovery. Bulls aiming for a rally toward $0.4000 must defend critical support levels like $0.3380 and $0.3250.
While there are risks of further declines, the possibility of a significant rebound cannot be ignored, especially if DOGE clears the key resistance zones. Traders should closely monitor price action and volume for confirmation of the next move.
