While some meme coins gained traction during the recent correction, Dogecoin remained weak as it slipped near a major support level. It currently faces an important resistance line on the daily chart.
From the yearly high, Dogecoin fell heavily and lost more than 27% of its price to the low of $0.07 in two months. After testing that level, the price was rejected and remained indecisive.
This heavy drop brought Doge’s price to an extremely oversold area. Since then, it has shown no signs of strength to even produce a small recovery. Looking at the set on the daily chart, the trend is still much in favour of the bears.
Earlier today, it attempted to push above a three-day high but the momentum was stopped after failing to push above the $0.074 level that coincides with the resistance line forming on the daily chart. If the coin overcomes that level, Doge could see an increase to $0.089 before slipping back. Higher price levels could be tapped if the price continues to increase.
A further breakdown could position the trend in a more downward range as the March low could be the next level for a retest. The $0.060 level stands as a solid point for a reversal. If it breaks lower, more selling actions can be expected.
While the extreme drop in Doge’s volume indicator reflects the heavy price losses that occurred a few months ago, an increase in that volume should signal an upcoming positive action.
DOGE’s Key Level To Watch
In the meantime, the nearest to consider for support are $0.069 and $0.0627. Lower levels to keep an eye on are $0.060 and $0.0555
If Doge shows strength and pushes higher, the immediate resistance level to watch out for is $0.0727. There’s also resistance at $0.076. The resistance to watch above this level is the $0.080 level.
Key Resistance Levels: $0.0727, $0.076, $0.080
Key Support Levels: $0.069, $0.0627, $0.6
- Spot Price: $0.0725
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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