Dogecoin Hits $0.1646 Before Dropping Below $0.1620

Dogecoin Hits $0.1646 Before Dropping Below $0.1620

Key Points:

  • Dogecoin rose above $0.1600 but faced a correction, dropping below the $0.1620 support.
  • Currently trading above $0.1600, supported by a bullish trend line on the hourly chart.
  • Resistance levels include $0.1640, $0.1650, and potentially $0.1720, with major resistance at $0.1800.

Dogecoin has been experiencing a notable upward trajectory, beginning a steady increase that saw the price surpass the $0.1500 mark. This bullish momentum pushed Dogecoin above the significant $0.1600 resistance zone, with the recent swing high recorded at $0.1646. However, this upward trend faced a downside correction as the price dropped below the $0.1620 support zone. The correction intensified with a spike below the 23.6% Fibonacci retracement level, calculated from the upward move from the $0.1571 swing low to the $0.1646 high. Despite this correction, Dogecoin’s overall trend remains positive.

Dogecoin Holds $0.1600, Backed by 100-hourly SMA.

Dogecoin is trading above the $0.1600 level, maintaining its position above the 100-hourly simple moving average. A key bullish trend line provides support near the $0.1600 mark on the hourly chart, reinforcing the positive outlook. This trend line is a crucial support level, helping maintain Dogecoin’s price stability amid market fluctuations. The strength of this support suggests that Dogecoin could continue its upward movement if it sustains above this critical level.

Dogecoin Nears $0.1720, Break Above $0.1650 Key.

Regarding resistance, Dogecoin faces its initial barrier at the $0.1640 level. The next significant resistance is at $0.1650. If the price manages to break through this level, there is potential for a rise towards $0.1720. Further gains could see Dogecoin climbing towards the $0.1750 mark, with a major resistance stopping the bulls at $0.1800. These resistance levels are crucial for Dogecoin’s upward trajectory, determining whether the cryptocurrency can continue its bullish trend or face a potential reversal.

Failure to Hold $0.1600 May Lead to $0.1520

The failure to rise above the $0.1650 resistance could lead to a decline. The initial downside support is found at $0.1600, reinforced by the bullish trend line. This level is close to the 50% Fibonacci retracement level of the upward move from $0.1571 to $0.1646, making it a critical support zone. A break below the major support at $0.1580 could result in a more significant decline, potentially driving the price down towards the $0.1520 level. These downside risks highlight the importance of the $0.1600 and $0.1580 support levels in maintaining Dogecoin’s price stability.

MACD Losing Bullish Momentum, RSI Above 50

Technical indicators provide additional insights into Dogecoin’s price movements. The hourly MACD is losing momentum in the bullish zone, indicating a potential slowdown in the upward trend. Meanwhile, the hourly RSI remains above the 50 level, suggesting that the bullish momentum still holds some strength. These indicators are essential for traders to monitor, as they provide signals about potential changes in the market sentiment.