Dogecoin’s Downward Spiral: Can the Meme Coin Recover?

Dogecoin, the cryptocurrency that rose to fame as a meme coin, has started a fresh decline against the US Dollar. The DOGE price has fallen below the $0.350 zone, leaving investors wondering if it can recover. In this article, we’ll delve into the current market trends, technical indicators, and potential resistance levels to determine if Dogecoin can bounce back.

A Fresh Decline: What Went Wrong?

Dogecoin’s price started a fresh decline after failing to surpass the $0.40 mark, similar to Bitcoin and Ethereum. The price dropped below the $0.3650 and $0.350 support levels, entering a short-term bearish zone. A low was formed at $0.3143, and the price is now attempting a recovery wave. However, the price is still below the 23.6% Fib retracement level of the downward move from the $0.3981 swing high to the $0.3143 low.

Technical Indicators: A Bearish Trend

The hourly MACD for DOGE/USD is gaining momentum in the bearish zone, indicating a potential downward trend. The hourly RSI (Relative Strength Index) is below the 50 level, further confirming the bearish sentiment. The price is trading below the $0.350 level and the 100-hourly simple moving average, making it challenging for the bulls to regain control.

Resistance Levels: A Steep Climb Ahead

Immediate resistance on the upside is near the $0.3350 level, with a connecting bearish trend line forming on the hourly chart of the DOGE/USD pair. The first major resistance for the bulls could be near the $0.340 level, followed by the $0.350 level or the 50% Fib retracement level of the downward move from the $0.3981 swing high to the $0.3143 low. A close above the $0.350 resistance might send the price toward the $0.3620 resistance, with further gains potentially reaching the $0.380 level.

Another Decline on the Horizon?

If Dogecoin’s price fails to climb above the $0.3350 level, it could start another decline. Initial support on the downside is near the $0.320 level, followed by the $0.3150 level. The main support sits at $0.30, and a downside break below this level could lead to a further decline toward the $0.2850 level or even $0.2720 in the near term.

Conclusion: A Recovery in Sight?

In conclusion, Dogecoin’s downward spiral has left investors wondering if the meme coin can recover. While technical indicators suggest a bearish trend, the price is consolidating and might recover if it clears the $0.3350 resistance. However, a failure to climb above this level could lead to another decline. As the cryptocurrency market continues to evolve, it’s essential to stay informed and adapt to changing trends. Will Dogecoin bounce back, or will it continue its downward spiral? Only time will tell.

Source: Newsbtc.com

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