Dogecoin (DOGE) Drifts Sideways—Will Bulls Step Up to the Challenge?

Dogecoin started a recovery wave above the $0.250 zone against the US Dollar. DOGE is now consolidating and might face hurdles near $0.2655.

• DOGE price started a recovery wave above the $0.2500 and $0.2520 levels.
• The price is trading above the $0.250 level and the 100-hourly simple moving average.
• There was a break above a connecting bearish trend line with resistance at $0.2515 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could start another increase if it clears the $0.260 and $0.2655 resistance levels.

Dogecoin Price Faces Resistance

Dogecoin price started a fresh decline from the $0.2940 resistance zone, like Bitcoin and Ethereum . DOGE dipped below the $0.280 and $0.2655 support levels. It even spiked below $0.250.

A low was formed at $0.2388 and the price is now rising. There was a move above the 23.6% Fib retracement level of the downward wave from the $0.2933 swing high to the $0.2388 low. The price even cleared the $0.2500 resistance level.

There was a break above a connecting bearish trend line with resistance at $0.2515 on the hourly chart of the DOGE/USD pair. Dogecoin price is now trading above the $0.250 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.260 level.

The first major resistance for the bulls could be near the $0.2655 level or the 50% Fib retracement level of the downward wave from the $0.2933 swing high to the $0.2388 low. The next major resistance is near the $0.2725 level.

Source: DOGEUSD on TradingView.com

A close above the $0.2725 resistance might send the price toward the $0.300 resistance. Any more gains might send the price toward the $0.320 level. The next major stop for the bulls might be $0.3420.

Another Decline In DOGE?

If DOGE’s price fails to climb above the $0.260 level, it could start another decline. Initial support on the downside is near the $0.2520 level. The next major support is near the $0.250 level.

The main support sits at $0.2380. If there is a downside break below the $0.2380 support, the price could decline further. In the stated case, the price might decline toward the $0.2250 level or even $0.2120 in the near term.

Technical Indicators

Hourly MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.

Major Support Levels – $0.2520 and $0.2500.

Major Resistance Levels – $0.2600 and $0.2655.