Dogecoin Price (DOGE) Poised for Continued Weakness Below $0.07

2023-08-17 05:46:00

Dogecoin is down over 10% and trading below the $0.070 resistance against the US Dollar. DOGE could extend losses if there is a move below $0.065.

DOGE is currently trading in a bearish zone below $0.072 against the US dollar.
The price is trading well below the $0.070 zone and the 100 simple moving average (4 hours).
There is a key bearish trend line forming with resistance near $0.071 on the 4-hours chart of the DOGE/USD pair (data source from Kraken).
The price could correct higher but upsides might be limited above $0.072.

Dogecoin Price Extends Losses

After facing a strong rejection near $0.078, Dogecoin price started a fresh decline. DOGE declined over 10% and traded below the $0.0720 support zone to enter a bearish zone, similar to Bitcoin and Ethereum.

The price even settled below the $0.070 level. Finally, it tested the $0.065 zone. A low is formed near $0.0657 and the price is now consolidating losses. It is approaching the 23.6% Fib retracement level of the recent decline from the $0.0772 swing high to $0.0657 low.

DOGE is now trading well below the $0.070 zone and the 100 simple moving average (4 hours). There is also a key bearish trend line forming with resistance near $0.071 on the 4-hours chart of the DOGE/USD pair.

On the upside, the price is facing resistance near the $0.0685 level. The first major resistance is near the $0.070 level or the trend line. It is near the 50% Fib retracement level of the recent decline from the $0.0772 swing high to $0.0657 low.

Source: DOGEUSD on TradingView.com

A close above the $0.072 resistance might send the price toward the $0.075 resistance. The next major resistance is near $0.0780. Any more gains might send the price toward the $0.080 level.

More Losses in DOGE?

If DOGE’s price fails to gain pace above the $0.0720 level, it could continue to move down. Initial support on the downside is near the $0.0655 level.

The next major support is near the $0.0632 level. If there is a downside break below the $0.0632 support, the price could decline further. In the stated case, the price might decline toward the $0.060 level.

Technical Indicators

4 Hours MACD – The MACD for DOGE/USD is now gaining momentum in the bearish zone.

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

Major Support Levels – $0.0655, $0.0632, and $0.0600.

Major Resistance Levels – $0.070, $0.072, and $0.075.

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