Dogecoin Rocky Recovery Path: Why DOGE Faces An Uphill Battle
Key Takeaways:
- Dogecoin price is consolidating losses above the $0.1140 support zone.
- DOGE is trading well below a crucial bearish trend line with resistance at $0.1440 on the daily chart.
- The price could see a downside thrust toward the $0.1070 support before a fresh increase.
NEW DELHI (CoinChapter.com) — DOGE seems to be forming a base above $0.1140. Dogecoin price might attempt a recovery wave, but upsides might not be easy above $0.140.
Dogecoin Price Faces Many Challenges
In the past few weeks, Dogecoin saw a steady decline from the $0.1750 resistance zone. The price declined below the key $0.150 and $0.1440 support levels to enter a bearish zone. DOGE even underperformed Bitcoin and Ethereum and declined below the $0.1220 support.
Finally, the bulls took a stand near the $0.1140 zone. A low has formed at $0.1140 and the price is now consolidating losses. It seems to be forming a base for a short-term recovery wave and remains well below the 50-day simple moving average.
The price is now trading well below a crucial bearish trend line with resistance at $0.1440 on the daily chart. If there is a recovery wave, the price could face resistance near the 23.6% Fib retracement level of the downward move from the $0.1742 swing high to the $0.1140 low at $0.1280.
A close above the $0.1280 level might spark a move toward the $0.140 resistance. The first major resistance is forming at $0.1440 and the trend line. It coincides with the 50% Fib retracement level of the downward move from the $0.1742 swing high to the $0.1140 low.
The next key resistance sits near the 50-day simple moving average at $0.150. A daily close above the trend line and then $0.150 could open the doors for a fresh rally. In the stated case, Dogecoin could rise and test the $0.1740 resistance.
More Downsides In DOGE?
Conversely, Dogecoin might fail to recover above the $0.1280 resistance or the trend line. In the stated case, the price could see a downside flush below the $0.120 support.
The first support sits near the $0.1140 level, below which DOGE price might test the 1.236 Fib extension level of the upward move from the $0.1200 swing low to the $0.1743 high at $0.1072. If the bulls fail to defend the $0.1072 support, the price might even struggle to stay above $0.10. The next key support sits near the $0.0865 region.
Recently, VanEck filed for the first Solana exchange-traded fund (ETF) in the US. This has sparked speculation of higher chances of DOGE ETF next in the coming months.
Overall, DOGE is consolidating above the $0.1140 support. To start a strong increase, the price must settle above the $0.1440 and $0.150 resistance levels in the coming days.
The post Dogecoin Rocky Recovery Path: Why DOGE Faces An Uphill Battle appeared first on CoinChapter.
