Dogecoin shows bearish signs below $0.2350 and $0.250. DOGE price is now consolidating and might struggle to recover above $0.250.
Dogecoin Price Dips Below Key Support
In the last technical analysis, we discussed how Dogecoin price consolidated above the key support at $0.220 and the 50-day simple moving average. It made a fresh attempt to surpass the $0.250 resistance zone. However, the bears remained active and protected an upside break.
There was another bearish reaction from the $0.2452 high, like Bitcoin. DOGE declined below the $0.2350 and $0.2250 support levels. More importantly, there was a move below a crucial contracting triangle with support at $0.2200 on the daily chart.
Dogecoin is now trading below $0.2320 and the 50-day simple moving average. The bulls are currently active above the $0.20 handle. A low was formed at $0.2050, and the price is now consolidating losses near the 23.6% Fib retracement level of the downward move from the $0.2452 swing high to the $0.2050 low.
There could be a short-term recovery wave, but upsides might be capped. Immediate resistance on the upside is near $0.2250 and the 50-day simple moving average. It coincides with the 50% Fib retracement level of the downward move from the $0.2452 swing high to the $0.2050 low.
A close above the 50-day simple moving average could decrease the current selling pressure and send the price toward $0.2350. The first major hurdle for bulls could be $0.250.
A clear move above $0.250 could set the pace for a larger increase. In the stated case, the price could rise and drift toward $0.2650. The next key target might be $0.280. Any more gains might send DOGE price toward the $0.30 handle in the coming days.
Downside Continuation In DOGE?
Conversely, Dogecoin might struggle to surpass the $0.2250 resistance or $0.2350. In the stated case, the price could start a fresh decline. Immediate support on the downside is near $0.2020.
The next major support sits near the $0.20 handle. If the bulls fail to defend $0.20, the price might accelerate lower and drop toward $0.1880. The main support could be $0.170. A downside break and close below $0.170 might spark heavy bearish moves and might call for a test of the $0.1420 region.
Overall, DOGE is consolidating losses below $0.2250 and $0.2350. To start a fresh increase, the price must surpass the 50-day simple moving average and $0.250. If not, it could continue lower toward $0.1880.
