Dogecoin has recently revisited the crucial $0.30 support zone against the US Dollar. Currently in a consolidation phase, the cryptocurrency’s future hinges on whether it can overcome key resistance levels.
The DOGE price has been on a downward trajectory, trading below the $0.320 mark and the 100 – hourly simple moving average. It initiated a fresh decline from above $0.3350, mirroring the movements of Bitcoin and Ethereum. During this downturn, it breached the $0.3250 and $0.320 support levels, even dipping briefly below $0.3120. A low of $0.3081 was reached, after which the price began to consolidate and managed to recover somewhat, climbing above $0.3150.
On the hourly chart of the DOGE/USD pair (data from Kraken), a connecting bearish trend line has formed with resistance at $0.3165. This level is a significant hurdle for DOGE. If the price can break through $0.3165 and then surpass the $0.320 resistance level, it could gain substantial momentum.
The first major resistance for the bulls lies near the $0.3250 level, which corresponds to the 50% Fibonacci retracement level of the downward move from the $0.3427 swing high to the $0.3081 low. Beyond that, the next major resistance is at $0.3295. A close above $0.3295 might trigger a rally towards the $0.350 resistance. Further gains could potentially send the price towards $0.3680, and the bulls’ next significant target might be $0.40.
However, if DOGE fails to climb above the $0.3165 level, it could be set for another decline. The initial support on the downside is near the $0.3120 level, followed by the $0.3080 level. The main support is firmly at $0.30. A decisive break below this $0.300 support could lead to further price erosion. In such a scenario, the price might decline towards the $0.2850 level or even reach as low as $0.2620 in the near term.
As the market stands, Dogecoin’s future direction remains uncertain, with the battle between bulls and bears intensifying around these key levels. Traders and investors will be closely watching to see if DOGE can build momentum and break through resistance or if it will succumb to another downward spiral.
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