Key Takeaways:
– Dogecoin price dives 30% below $0.280 against the US Dollar.
– Major bearish trend line resistance at $0.270 could hinder recovery.
– DOGE price now showing signs of increase after clearing $0.250 and $0.270 levels.
– If the price fails to rise, further decline could bring the price to $0.1650 in the near term.
Dogecoin (DOGE) Plummets
Dogecoin, a popular cryptocurrency, faced a considerable slump recently as its price dropped heavily below the $0.280 support against the US Dollar. The cryptocurrency mirrored the decline of others, such as Bitcoin and Ethereum, as it began a downward trend from its $0.3250 resistance zone.
Dogecoin Plunge and Subsequent Recovery
The price of DOGE dipped notably below the $0.300 and $0.2750 support levels, even spiking to lows of under $0.220. The currency saw a decline of over 25%, testing the $0.20 zone and forming a low at the said price.
However, recent activities indicate a possible rebound. Dogecoin has moved above the 23.6% Fib retracement level of the downward swing—a signal that could herald an increase in the price.
Dogecoin is currently trading above the $0.280 level and the 100-hourly simple moving average—key indicators that bode positively. Immediate resistance to an upward trajectory lies at the $0.250 level. Significant resistance could be on the horizon near the $0.260 level.
Further resistance towards recovery is eyed with the emergence of a major bearish trend line forming with resistance at the $0.270 level. Clearing this could push the price towards the $0.2880 level. Any further gains could potentially bring the price towards the $0.30 level and, subsequently, the $0.320 mark.
Potential for Another DOGE Decline?
While the signs of recovery hold considerable promise, the DOGE price must pass the $0.250 level to secure its upward trend. The possibility of another decline remains if the price fails to climb. Initial support on the downside lies near the $0.2250 level, with significant support at the $0.2150 level.
The main line of support remains at $0.20. A downside break below this level could trigger further declines, and the price may fall towards the $0.1880 level or even down to $0.1650 in the near term.
Technical Indicators Point Towards Bearish Zone
According to technical indicators, the price of DOGE is gaining momentum in the bearish zone, as confirmed by the Hourly MACD for DOGE/USD. The current state of the Hourly RSI (Relative Strength Index) for DOGE/USD is below the 50 level, indicating a bearish market for the cryptocurrency.
Given these conditions, major support levels lie at $0.2250 and $0.2150, while major resistance levels are situated at $0.2500 and $0.2700. As the cryptocurrency market remains notoriously volatile, investors and traders should remain vigilant of these resistance and support levels as Dogecoin charts its course following this significant downturn.