Key Takeaways:
- Dogecoin price is struggling to recover above the $0.070 resistance.
- DOGE follows a key bearish trend line with resistance near $0.0650 on the daily chart.
- The price could take a hit and drop below the $0.055 support.
NEW DELHI (CoinChapter.com) — The Dogecoin (DOGE) price is signaling a bearish break below $0.0650 toward the $0.0550 support.
Dogecoin Price Turns Red
After a strong decline, DOGE found support near the $0.055 zone against the US Dollar. The price traded as low as $0.0550 and started an upside correction.
A decent recovery wave was above the $0.060 level, like Bitcoin and Ethereum. The price climbed above the 23.6% Fib retracement level of the downward move from the $0.0838 swing high to the $0.0550 low.
The price spiked toward the $0.070 resistance, but there was no follow-through. DOGE failed to clear the 50-day simple moving average (blue).
The price peaked near $0.0690 and started a fresh decline. There was a break below a connecting bullish trend line with support near $0.0620 on the daily chart, signaling a bearish wave. Besides, the price now follows a key bearish trend line with resistance near $0.0650 on the same chart.
Immediate support on the downside is near the $0.060 level. The next major support is near $0.0585. The main support sits near the $0.0550 level. If there comes a downside break below the $0.055 support, the price might gain bearish momentum toward $0.052.
Any more losses could open the doors for a move toward the crucial support at $0.050.
Another Increase?
Conversely, Dogecoin could attempt a fresh increase. Immediate resistance on the upside is near the $0.0635 level. The first major resistance is near the $0.065 zone and the trend line.
A clear move above the trend line might increase the price toward the $0.0695 resistance. It is close to the 50% Fib retracement level of the downward move from the $0.0838 swing high to the $0.0550 low, above which DOGE could rise toward the $0.075 resistance.
Any more gains might send the price toward the $0.082 resistance.
Overall, DOGE is signaling a downside break below the $0.0632 level. If the Dogecoin price slides below $0.060, fresh lows could drop below $0.055 in September 2023. Conversely, the price might make another attempt to rise toward $0.070.
