DOGE Under Pressure: Key Support Level Tests Bulls' Resolve

Dogecoin's recent dip below $0.400 against the US Dollar marks a significant shift. Currently trading around $0.3750, it could potentially rebound soon.

After falling below $0.420, Dogecoin experienced a notable decline. It now trades below $0.40 and the 100-hour simple moving average. According to Kraken data, a descending trendline is providing resistance near $0.4260 on the hourly chart. Breaking above $0.420 and $0.4250 could rekindle buying momentum.

Dogecoin's price followed Bitcoin and Ethereum's trends, moving below crucial levels of $0.4120 and $0.400. A brief dip below $0.3880 led to a low of $0.3749, resulting in a period of consolidation. The cryptocurrency then partially recovered, rising above $0.3850, and hovered around the 23.6% Fibonacci retracement level.

Dogecoin remains trapped below $0.4250 and the 100-hour moving average, facing immediate resistance at around $0.4080. Significant resistance lies at $0.4250 for bullish traders. Another bearish trendline suggests resistance at $0.4260, coinciding with the 50% Fibonacci retracement level of the previous downturn.

A major obstacle lies near $0.4550. Sustained trading above this level could drive growth towards $0.4650 and potentially $0.5000. Should bullish momentum continue, $0.5200 becomes the next strategic target.

If Dogecoin fails to break above $0.4250, a further decline may occur. Initial support is around $0.3880, with strong support near $0.3750. A critical support level is at $0.3650, posing a potential threat. A breach could push the price towards $0.3420 or even $0.3250 in the short run.

The MACD currently indicates bearish momentum for Dogecoin. Additionally, the RSI remains below 50, reinforcing a cautious approach. Key support levels are $0.3880 and $0.3750, while significant resistance is at $0.4080 and $0.4250.