DOGE Price Drops 50% From Highs, Can Dogecoin Bulls Save 100-DSMA?

Key Takeaways:

Dogecoin price started a major decline from the $0.20 resistance.
DOGE traded below a key rising channel with support at $0.140 on the daily chart.
The price could find strong bids near the $0.120 support or the 50-day simple moving average (blue).

DOGE price drops 50%

NEW DELHI (CoinChapter.com) — DOGE is declining below $0.150. Dogecoin price must stay above the $0.100 support start a fresh increase in the current cycle.

Dogecoin Price Trims Gains

In the last technical analysis, we discussed key reasons why Dogecoin could surge toward $0.20. DOGE did gain bullish momentum above the $0.150 and $0.160 resistance levels. It outperformed Bitcoin and tested the $0.20 resistance zone.

A new multi-month high was formed at $0.2059, and the price recently started a downside correction. There was a sharp decline below the $0.1720 and $0.1650 support levels. The bears pushed the price below the 50% Fib retracement level of the upward move from the $0.0731 swing low to the $0.2059 swing high.

More importantly, Dogecoin traded below a key rising channel with support at $0.140 on the daily chart. It is now accelerating lower below the $0.140 support zone.

The first major support on the downside sits near the $0.1240 level. It is close to the 61.8% Fib retracement level of the upward move from the $0.0731 swing low to the $0.2059 swing high. The main support is now forming near the $0.100 zone or the 50-day simple moving average (blue).

DOGE bulls might take a strong stand near the 50-day simple moving average (DSMA) or $0.100. If they fail to defend the $0.10 support, it could spark heavy losses. In the stated case, the bears could aim for a downside thrust toward the $0.0740 pivot level.

Fresh Increase In DOGE?

Conversely, Dogecoin might find support near the $0.1240 level or $0.100 and then start a fresh bullish wave. The first major resistance on the upside is $0.140. A close above the $0.140 resistance could start a steady increase.

In the stated case, the price could even surpass the $0.1550 resistance and test $0.1620. Any more gains might send the price toward the $0.200 hurdle.

Overall, DOGE is gaining bearish momentum below the $0.140 support. However, Dogecoin bulls might appear near the $0.1240 zone or $0.100. If not, the price might drop toward $0.0740 in the coming days.