Dogecoin (DOGE) Builds Accumulation Structure Ahead Of Possible Breakout

Dogecoin corrected some gains and traded below $0.1050 against the US Dollar. DOGE is now holding the $0.10 support and might aim for a fresh increase.

• DOGE price started a fresh downside correction below $0.1120.
• The price is trading below the $0.1050 level and the 100-hourly simple moving average.
• There is a declining channel forming with resistance at $0.1020 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could aim for a fresh increase if it remains stable above $0.10.

Dogecoin Price Faces Resistance

Dogecoin price started a downside correction after it failed to stay above $0.1150, like Bitcoin and Ethereum. DOGE declined below the $0.1100 and $0.1080 levels.

There was a move below the 50% Fib retracement level of the upward move from the $0.0878 swing low to the $0.1175 high. The price even spiked below $0.10 before the bulls appeared. The price is now forming a base above $0.10 and preparing for the next move.

There is also a declining channel forming with resistance at $0.1020 on the hourly chart of the DOGE/USD pair. Dogecoin price is now trading below the $0.1050 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.1020 level. The first major resistance for the bulls could be near the $0.1070 level.

The next major resistance is near the $0.1120 level. A close above the $0.1120 resistance might send the price toward $0.1150. Any more gains might send the price toward $0.1180. The next major stop for the bulls might be $0.120.

Another Decline In DOGE?

If DOGE’s price fails to climb above the $0.1020 level, it could continue to move down. Initial support on the downside is near the $0.10 level.

The next major support is near the $0.0945 level or the 76.4% Fib retracement level of the upward move from the $0.0878 swing low to the $0.1175 high. The main support sits at $0.0920. If there is a downside break below the $0.0920 support, the price could decline further. In the stated case, the price might slide toward the $0.0875 level or even $0.0865 in the near term.

Technical Indicators

Hourly MACD – The MACD for DOGE/USD is now losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.

Major Support Levels – $0.1000 and $0.0945.

Major Resistance Levels – $0.1020 and $0.1070.