After experiencing a significant surge akin to Bitcoin’s rally, Dogecoin (DOGE) encountered resistance near the $0.4850 zone. The cryptocurrency fell short of testing the $0.50 mark and subsequently entered a corrective phase. This movement resulted in multiple price swings before settling below the $0.4400 level.
The recent low for Dogecoin was recorded at $0.3660, followed by a modest recovery above the $0.380 level. The price remains above its 50-day simple moving average, providing some support to its current valuation. As of now, Dogecoin is trading above the $0.40 support level, aligning with a key rising channel on the daily chart, where the channel’s support lies near $0.3920. However, the bullish momentum appears to be weakening.
If Dogecoin resumes its upward trend, it may encounter resistance at the 50% Fibonacci retracement level of the downward move from the $0.4845 high to the $0.3660 low. The first critical resistance level is near $0.4350, and a clear break above this could push the price toward $0.4500. Beyond that, the next significant resistance sits around $0.4550, which coincides with the 76.4% Fibonacci retracement level. A successful breakout above $0.4550 could set the stage for a retest of $0.4850 and potentially a move toward $0.50.
Risks of a Pullback
On the downside, DOGE risks further losses if it fails to clear the $0.4350 resistance. Immediate support lies at $0.3880, close to the channel’s trend line. Below this, the first significant support level is $0.3380, near the 50-day simple moving average. If this level is breached, the price could drop to $0.3050.
In an extended bearish scenario, DOGE might test the $0.2550 support. Failure to hold this level could lead to further declines, with the price potentially reaching $0.2200 or even $0.2000 in the medium term.
Overall, DOGE’s ability to sustain gains above $0.380 and break through $0.4350 and $0.4550 will determine its trajectory in the near term.