Dogecoin has been undergoing a correction from its recent highs around the $0.230 mark against the US Dollar. In order to initiate a new upward trend, DOGE needs to maintain support above the $0.1750 level.
Despite struggling to sustain levels above $0.225, DOGE has managed to trade above the $0.1750 mark and the 100 simple moving average (4 hours). However, a significant development occurred with the breach of a crucial bullish trend line, previously offering support at $0.2040, as observed on the 4-hour chart of the DOGE/USD pair (sourced from Kraken).
Unless there is a close below the critical support level of $0.1750, there remains potential for the price to resume its upward trajectory.
Dogecoin’s Price Nears Crucial Support Level
Following a steady climb, Dogecoin’s price made an attempt to extend gains beyond the $0.230 threshold. However, DOGE encountered resistance above $0.2250, resulting in a peak at $0.2294 before initiating a downward correction, mirroring movements seen in Bitcoin and Ethereum.
This correction saw the price slipping beneath the $0.2050 and $0.200 support levels, breaching the 23.6% Fibonacci retracement level of the upward movement from the $0.1228 swing low to the $0.2294 high.
Furthermore, a significant development unfolded as a crucial bullish trend line with support at $0.2040 on the 4-hour chart of the DOGE/USD pair was broken. Despite these movements, Dogecoin remains positioned above the $0.1750 mark and the 100 simple moving average (4 hours).
![](https://sollcrypto.com/wp-content/uploads/2024/04/Screen-Shot-2024-04-02-at-9.20.11-AM.png)
To the upside, the price encounters resistance around the $0.1950 mark, with the subsequent significant barrier lying near $0.200. If the price manages to close above this $0.200 resistance, it could potentially propel towards the $0.2150 resistance level. Following this, the next major resistance emerges near $0.2300, with further gains possibly steering the price towards the $0.2500 threshold.
Is Further Downward Movement Expected for DOGE?
Should DOGE fail to gather momentum above the $0.200 mark, a continuation of its downward trajectory could be anticipated. Initial support on the downside is anticipated near the $0.1820 level.
Following this, the next significant support is expected around the $0.1750 level or the 50% Fibonacci retracement level of the upward movement from the $0.1228 swing low to the $0.2294 high. A breach below the $0.1750 support could prompt further declines, potentially leading the price towards the $0.1480 level.
In terms of technical indicators, the 4-hour MACD for DOGE/USD is currently showing increasing bearish momentum, while the 4-hour RSI (Relative Strength Index) has dipped below the 50 level.
Key support levels include $0.1820, $0.1750, and $0.1480, whereas major resistance levels stand at $0.2000, $0.2150, and $0.2300.