Dogecoin has been showing signs of recovery after experiencing a significant correction from its recent peak. The cryptocurrency broke below a short-term ascending trend line that had been connecting rising lows since mid-March, suggesting a significant shift in trend.
Price is in pullback mode and could be due for a quick retest of the broken support that could now hold as resistance, possibly allowing the downtrend to gain further traction past the latest lows.
Dogecoin Key Levels to Watch
The chart shows DOGE/USD currently trading around the $0.17013 level, attempting to recover from the recent drop that reached as low as $0.16021, which now serves as a critical support level (marked as 0.0% on the Fibonacci retracement).
Notably, the price has formed a series of higher lows since reaching this bottom, indicating that buyers are stepping in at these lower levels. However, DOGE must contend with several key resistance levels identified by the Fibonacci retracement tool:
- 38.2% Fib level at $0.17757
- 50.0% Fib level at $0.18294
- 61.8% Fib level at $0.18831
These price zones are likely to act as significant barriers in Dogecoin’s attempted recovery.
DOGEUSD Technical Analysis
The chart displays both 100 and 200 moving averages (MA), which are currently in a bearish configuration. The 100 MA (blue line) is positioned below the 200 MA (red line), typically signaling bearish market conditions. However, price has recently crossed above the 100 MA, which could be the first indication of a potential trend reversal.
The convergence of the 50% Fibonacci level with the 200 MA around $0.183 creates a particularly strong resistance zone that bulls need to overcome to confirm a more substantial reversal.
The MACD (Moving Average Convergence Divergence) indicator at the bottom of the chart is showing a bullish crossover, with the MACD line crossing above the signal line. This suggests increasing bullish momentum in the near term. Additionally, the histogram bars are turning positive, further confirming this building bullish momentum.
The Stochastic oscillator (14,3,3) has recently moved into overbought territory, reaching near the 100 level. While this indicates strong buying pressure, it also suggests that the immediate upside momentum might be approaching exhaustion. Traders should watch for a potential reversal in the Stochastic if it begins to turn down from these elevated levels.
Dogecoin Price Outlook
In the short term, if DOGE can maintain its position above the $0.17 level and successfully break through the 38.2% Fibonacci resistance at $0.17757, we could see a continued rally toward the 50% retracement level at $0.18294. This level coincides with the 200 MA, making it a significant resistance zone.
A decisive break above the 61.8% Fibonacci level at $0.18831 would suggest that the correction has ended, potentially opening the path toward retesting previous highs near $0.20000.
Conversely, if sellers regain control and push the price below the recent low of $0.16021, this could invalidate the current recovery attempt and potentially lead to a test of lower support levels not visible on the current chart.
Traders should monitor volume patterns and watch for any divergences in the technical indicators that might signal weakness in the current recovery attempt. The confluence of technical factors suggests that while DOGE is showing recovery potential, it faces significant hurdles before confirming a full trend reversal.
