Dogecoin (DOGE) has recently seen its price fall below the key support level of $0.400, beginning a downward correction. At this point, the price is already below $0.4050 and the 100-hour simple moving average.
On the hourly chart of DOGE/USD, a bullish trendline has appeared, with support located at $0.3950. The current price is around $0.3963, temporarily consolidating, possibly preparing for a subsequent rebound.
Possible rebound path
If the price of Dogecoin breaks through the resistance levels of $0.4050 and $0.4150, it is expected to initiate a new round of increases. In the short term, the price first needs to break through the immediate resistance near $0.4025.
If it can break through $0.4050, the price may advance towards the key level of $0.4095, which corresponds to the 76.4% Fibonacci retracement level between the high of $0.4136 and the low of $0.3963.
If this level is further broken, the price may approach the resistance levels of $0.4150 and $0.4350, with a target possibly at $0.4500, becoming the next main stop-loss point for bulls.
Downward risk
However, if DOGE fails to break above $0.4050, the price may drop again. Initial support is at $0.3980, and if this support is broken, it may test the key support level of $0.3950 next.
If the downward trend continues, the price may drop to $0.3750, and it might even break this level, moving further towards the lows of $0.350 or even $0.3420.
Technical indicator analysis
MACD: The MACD for DOGE/USD is currently in the bearish zone, lacking momentum.
RSI (Relative Strength Index): The RSI value for DOGE/USD is currently below 50, further confirming the downward pressure.
Support levels: $0.3980, $0.3950, $0.3750.
Resistance levels: $0.4050, $0.4095, $0.4150.