Dogecoin (DOGE) has struggled to break above $0.210 and corrected some gains against the US Dollar. Currently, DOGE is consolidating and may see a drop below $0.1980.

The Beginning of the Dogecoin Price Drop

After successfully settling above $0.1920, Dogecoin (DOGE) started a fresh rise similar to Bitcoin (BTC) and Ethereum (ETH). DOGE managed to break the $0.20 resistance and entered the positive zone. However, after reaching a peak at $0.2094, DOGE started correcting the gains it had made. It fell below the 23.6% Fibonacci retracement level of the upward move from the low of $0.1843 to the high of $0.2094.

Technical Analysis: Indicators Show Downside Potential

In addition, there was also a break below the contraction triangle with support at $0.20 on the hourly chart of the DOGE/USD pair. Dogecoin price is now trading below the $0.20 level and the 100-hour simple moving average. In case of another rise, the immediate resistance on the upside is near the $0.2020 level. The first major resistance for buyers may be near the $0.2050 level, with the next major resistance near $0.210.

Potential for Further Decline

If Dogecoin price fails to rise above the $0.2020 level, there is a possibility of a downward correction. Initial support on the downside is near the $0.1970 level and the 50% Fibonacci retracement level of the upside move from the $0.1843 low to the $0.2094 high. The next major support is near the $0.1935 level. The key support lies at $0.190. In case of a downward break below the $0.190 support, the price could drop further. In that case, the price may slide towards $0.1840 or even $0.1780 in the short term.

Dogecoin’s future in the hands of the market

With the hourly MACD indicator now gaining momentum in the bearish zone and the hourly RSI (Relative Strength Index) below the 50 level, the short-term outlook for Dogecoin appears to be tough. Investors and market watchers should keep an eye on key support and resistance levels to anticipate further price movements.

Disclaimer

This content aims to enrich readers’ information. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing.

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