Key Takeaways:
- Dogecoin price failed to extend its rally above $0.1065 and trimmed gains.
- DOGE traded below a crucial bullish trend line with support at $0.0885 on the daily chart.
- The price could extend losses and revisit the $0.060 support zone in the coming days.
New Delhi(Coinchapter.com): DOGE peaked near $0.1065 and started a fresh decline. Dogecoin price is signaling a bearish breakdown and might drop toward $0.060.
Dogecoin Price Trims Gains
In December 2023, Dogecoin saw a strong increase above the $0.080 resistance. DOGE followed a bullish path like Bitcoin and even cleared the $0.090 resistance. Finally, there was a spike above the $0.100 level before the bears appeared.
A key top was formed at $0.1063, and the price started a fresh decline. There was a move below the $0.090 and $0.0850 support levels. More importantly, the price traded below a crucial bullish trend line with support at $0.0885 on the daily chart.
The bears even pushed DOGE below the 50% Fib retracement level of the main increase from the $0.0568 swing low to the $0.1063 high. It is now trading well below $0.085 and the 50-day simple moving average (blue).
The current price action suggests a bearish breakdown and a close below $0.080. The crypto market is already witnessing a lot of drama surrounding ETFs. Recently, the SEC account was hacked and a false tweet about ETF approval was posted. It sparked sharp moves in BTC with an overall increase in selling pressure.
The first key support for DOGE is near the $0.0755 level. It coincides with the 61.8% Fib retracement level of the main increase from the $0.0568 swing low to the $0.1063 high.
A downside break below the $0.0755 support could send Dogecoin toward the $0.0685 support. Any more losses might call for a downside thrust toward the $0.060 pivot level or the $0.0568 low in the coming days.
Fresh Increase in DOGE?
Conversely, DOGE price might attempt a fresh increase from $0.0755 or $0.0685. The first major resistance on the upside is $0.0850. There is also a connecting bearish trend line forming at $0.0850 on the same chart.
A close above the $0.0850 resistance could spark a fresh increase. In the stated case, the price could even surpass the 50-day simple moving average (blue) and test $0.0940. Any more gains might send the price toward the $0.1065 hurdle.
Overall, DOGE is facing an increase in selling pressure below $0.080. If Dogecoin price stays below $0.080 and $0.0850, it could drop toward $0.0755 and then $0.0685. Conversely, the price might climb higher toward $0.0940.
