Dogecoin gave back some of its recent gains, falling below $0.1080 against the US Dollar. While DOGE is currently holding above the $0.10 support level, it could still drop further. The decline began after the price failed to break past $0.1175.
Currently, DOGE is trading above $0.10 and the 100-hour simple moving average. A key bullish trend line is also forming with support at $0.10 on the hourly chart. If the price stays above $0.10, it could attempt another upward move.
After being unable to clear the $0.1175 resistance, Dogecoin started to correct lower. It fell below $0.1120 and $0.1080, even dipping under $0.1040 at one point. This decline took it below the 50% Fibonacci retracement level of the recent rally from $0.0878 to $0.1175.
On the upside, immediate resistance sits near $0.1035, followed by more significant levels at $0.1065 and $0.1085. A sustained close above $0.1085 could push the price toward $0.1120, with further targets at $0.1150 and $0.1175.
If DOGE fails to climb above $0.1060, it may continue to decline. Initial support is at the $0.10 level and the trend line. The next major support is near $0.0950, which aligns with the 76.4% Fibonacci retracement level. Below that, key support rests at $0.0928. A break under $0.0928 could lead to further losses toward $0.0880 or even $0.0850.
Technical Indicators:
– Hourly MACD: Gaining momentum in bearish territory.
– Hourly RSI: Currently below the 50 level.
– Major Support Levels: $0.1000 and $0.0950.
– Major Resistance Levels: $0.1060 and $0.1085.
Frequently Asked Questions
FAQs Dogecoin Retreats from Recent Gains Key Support Level in Focus
BeginnerLevel Questions
1 What does it mean that Dogecoin is retreating from recent gains
It simply means the price of Dogecoin which had been going up has started to fall back down giving back some of those increases
2 What is a key support level
A support level is a specific price point where Dogecoin has historically stopped falling and bounced back up Its like a floor that traders expect might hold the price again
3 Why is the price of Dogecoin dropping now
Prices can drop for many reasons including profittaking broader market downturns or a shift in overall investor sentiment away from riskier assets like cryptocurrencies
4 Is this a normal thing for crypto
Yes very normal Cryptocurrency prices are famously volatile Sharp rallies followed by pullbacks are a common pattern
5 Should I be worried if I own Dogecoin
Shortterm price movements are always a part of crypto investing Its more important to focus on your longterm strategy and only invest what you can afford to lose rather than reacting to every dip
Intermediate Advanced Questions
6 Which specific key support level is currently in focus for DOGE
Analysts look at previous price consolidation zones or moving averages to identify this level
7 What happens if Dogecoin breaks below the key support level
If the price falls and stays below that support level on significant trading volume it often signals further downside is likely The next lower support level then becomes the new focus
8 What could cause Dogecoin to bounce back from this support
A bounce could be triggered by a positive shift in the overall crypto market a major announcement or simply enough buyers stepping in at that cheap price level to push it back up