Dogecoin (DOGE) Trims Gains, Can This Key Support Hold Losses?

Dogecoin started a fresh decline from the $0.1085 resistance against the US Dollar. DOGE is struggling and might soon test the $0.0980 support.

• DOGE price is gaining bearish momentum below $0.1035.

• The price is trading below the $0.1020 level and the 100-hourly simple moving average.

• There is a key bearish trend line forming with resistance at $0.1050 on the hourly chart of the DOGE/USD pair (data source from Kraken).

• The price could extend losses and revisit the key support at $0.0980.

Dogecoin Price Extends Losses

After a steady increase, Dogecoin price faced sellers near the $0.1085 level. The price formed a short-term top and started another decline below the $0.1050 level like Bitcoin and Ethereum.

There was a move below the $0.1035 support zone. The price dipped below the 50% Fib retracement level of the upward move from the $0.0978 swing low to the $0.1084 high. There is also a key bearish trend line forming with resistance at $0.1050 on the hourly chart of the DOGE/USD pair.

Dogecoin price is now trading below the $0.1035 level and the 100-hourly simple moving average. It is also testing the 76.4% Fib retracement level of the upward move from the $0.0978 swing low to the $0.1084 high.

Immediate resistance on the upside is near the $0.1032 level. The next major resistance is near the $0.1045 level. A close above the $0.1045 resistance might send the price toward the $0.1050 resistance. Any more gains might send the price toward the $0.1085 level. The next major stop for the bulls might be $0.1120.

More Downsides In DOGE?

If DOGE’s price fails to climb above the $0.1035 level, it could start another decline. Initial support on the downside is near the $0.1000 level. The next major support is near the $0.0980 level.

The main support sits at $0.0918. If there is a downside break below the $0.0918 support, the price could decline further. In the stated case, the price might decline toward the $0.0880 level or even $0.0850 in the near term.

Technical Indicators

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

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

Major Support Levels – $0.0980 and $0.0918.

Major Resistance Levels – $0.1035 and $0.1050.