Dogecoin Drops 10% After Reaching $0.1852 High

Dogecoin (DOGE) has recently experienced a pullback after initiating a fresh increase above the $0.1700 zone against the US Dollar. The cryptocurrency climbed above the $0.1700 and $0.1800 resistance levels before encountering resistance from bears. A high was formed at $0.1852, following which the price started a downside correction, moving below the $0.180 and $0.1750 levels. The price dipped below the 23.6% Fib retracement level of the upward move from the $0.1558 swing low to the $0.1852 high.

There was also a break below a key bullish trend line with support at $0.1760 on the hourly chart of the DOGE/USD pair. Despite this correction, Dogecoin price is now trading above the $0.170 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.1780 level, with the first major resistance for the bulls near the $0.180 level. The next major resistance is near the $0.1850 level. A close above the $0.1850 resistance might send the price toward the $0.1920 resistance, with any further gains potentially pushing the price toward the $0.1980 level. The next major stop for the bulls might be $0.200.

If DOGE’s price fails to climb above the $0.180 level, it could start another decline. Initial support on the downside is near the $0.1720 level, with the next major support near the $0.1705 level and the 50% Fib retracement level of the upward move from the $0.1558 swing low to the $0.1852 high. The main support sits at $0.1650. If there is a downside break below the $0.1650 support, the price could decline further, potentially toward the $0.1550 level or even $0.1450 in the near term.

Technical indicators suggest that the MACD for DOGE/USD is now losing momentum in the bullish zone, while the RSI for DOGE/USD is now below the 50 level. Major support levels are at $0.1705 and $0.1650, with major resistance levels at $0.1800 and $0.1850. According to the analyst's forecast, if Dogecoin can find support at $0.1650, it may bounce back and resume its upward trend. However, if it fails to hold this support level, further declines could be on the horizon.