Key Takeaways:
- Dogecoin price declined heavily and retested the key $0.070 support.
- DOGE is struggling below a crucial bearish trend line with resistance near $0.081 on the daily chart.
- The price could start a major increase if there is a clear move above $0.080 and then $0.090.
DOGE declined over 15% and tested the $0.070 support. Dogecoin price is approaching important support zones and might bounce back.
Dogecoin Price Visits Key Support
After facing a strong rejection near the $0.110 zone, doge price started a fresh decline against the US Dollar. The price reacted the downside and traded below the $0.10 support zone.
The bears took control and were able to push the price below the $0.0950 support plus the 50-day simple moving average (blue). The decline was such that the price even dived below the $0.080 support zone.
Dogecoin price daily chart | Source: DOGEUSD on TradingView.com
The price is down over 15% in a week and it is now trading near a major support at $0.070. A low is formed near $0.0698 and the price is now consolidating losses, similar to bitcoin.
It seems like doge price is struggling below a crucial bearish trend line with resistance near $0.081 on the daily chart. An immediate resistance on the upside is near the $0.7950 level. It is close to the 23.6% Fib retracement level of the recent decline from the $0.1118 high to $0.0698 low.
The first major resistance is near the $0.080 zone and the trend line. A clear move above the trend line might send the price 10% higher towards the $0.090 resistance. It is close to the 50% Fib retracement level of the recent decline from the $0.1118 high to $0.0698 low.
The next major resistance could be near the $0.095 and the 50-day simple moving average (blue). Any more gains might send the price towards the $0.110 resistance.
More Pain?
Conversely, the price might fail to clear the $0.080 and $0.081 resistance levels. An immediate support on the downside is near the $0.0720 level. The next major support is near $0.070.
If there is a downside break below the $0.0700 support, the price might gain bearish momentum towards $0.065. Any more losses could open the doors for a move towards the crucial support at $0.060, where the bulls could take a stand.
Overall, DOGE is trading near an important support $0.070. If dogecoin price clears the $0.080 resistance zone, it could start a steady increase. Conversely, there could be more downsides towards the next crucial support at $0.060.
