Dogecoin (DOGE) Flatlines—Is a Breakout or Breakdown Coming?

Dogecoin started a fresh decline below the $0.2620 zone against the US Dollar. DOGE is now consolidating and struggling to clear the $0.2550 resistance.

• DOGE price started a fresh decline below the $0.270 and $0.2620 levels.
• The price is trading below the $0.2580 level and the 100-hourly simple moving average.
• There was a break above a connecting bearish trend line with resistance at $0.2540 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could start another increase if it clears the $0.2550 and $0.2620 resistance levels.

Dogecoin Price Struggles To Gain Pace

Dogecoin price started a fresh decline below the $0.2750 zone, unlike Bitcoin and Ethereum. DOGE dipped below the $0.270 and $0.2620 support levels. It even spiked below $0.2550.

A low was formed at $0.2420 and the price is now attempting to recover. There was a move above the 23.6% Fib retracement level of the downward move from the $0.2830 swing high to the $0.2420 low. There was also a break above a connecting bearish trend line with resistance at $0.2540 on the hourly chart of the DOGE/USD pair.

However, the pair is struggling to settle above the $0.2550 resistance level. Dogecoin price is now trading below the $0.2540 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.2550 level.

The first major resistance for the bulls could be near the $0.2625 level or the 50% Fib retracement level of the downward move from the $0.2830 swing high to the $0.2420 low. The next major resistance is near the $0.2720 level.

A close above the $0.2720 resistance might send the price toward the $0.300 resistance. Any more gains might send the price toward the $0.320 level. The next major stop for the bulls might be $0.3420.

Another Decline In DOGE?

If DOGE’s price fails to climb above the $0.2550 level, it could start another decline. Initial support on the downside is near the $0.2500 level. The next major support is near the $0.2450 level.

The main support sits at $0.2420. If there is a downside break below the $0.2420 support, the price could decline further. In the stated case, the price might decline toward the $0.2350 level or even $0.2220 in the near term.

Technical Indicators

Hourly MACD – The MACD for DOGE/USD is now losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.

Major Support Levels – $0.2500 and $0.2420.

Major Resistance Levels – $0.2550 and $0.2620.