Will the 50% surge in Dogecoin signal a return of the ‘Musk Effect’ or lead to a …

Dogecoin has been facing pressure on its trend since surpassing the $0.210 mark. Currently, the cryptocurrency is undergoing a correction, and its exchange rate against the US dollar has partially recovered from previous gains. The price of Dogecoin is now in a consolidation phase, with the support level at $0.1980 potentially decreasing further in the future.

The value of DOGE has dropped below $0.2035, signaling a new downward correction phase. The current price is below the psychological threshold of $0.20 and the 100-hour simple moving average. According to data from Kraken, the DOGE/USD pair is trading below the support level of $0.20 on the hourly chart. However, if the price stabilizes above $0.1940, there is still a chance for a rebound.

Following a period of stability above $0.1920, Dogecoin has mirrored the upward trend of Bitcoin and Ethereum. After breaking through the resistance level of $0.20, DOGE entered an ascending channel. The price briefly reached highs of $0.2094 after surpassing $0.2020 and $0.2050 but has since undergone a technical correction. It has retraced below the 23.6% Fibonacci level from a low of $0.1843 to a high of $0.2094.

The key support level of $0.20 has been breached on the DOGE/USD hourly chart, with the price also falling below the 100-hour simple moving average. If buying strength recovers, the next resistance levels to watch are $0.2020 and $0.2050, with a critical level at $0.210. A successful break above $0.210 could pave the way for further growth towards $0.2150, followed by targets at $0.2250 and $0.2320.

Failure to break through the $0.2020 resistance level could lead to a deeper technical correction for Dogecoin. Initial support is likely to be found at $0.1970, corresponding to the 50% Fibonacci retracement level, while further support is around $0.1935. The key support level remains at $0.190, and a breach of this could lead to a more significant decline, potentially testing $0.1840 and even $0.1780.

Technical indicators on the hourly chart show that the MACD for DOGE/USD is in a downtrend, with the RSI hovering below the neutral line of 50, indicating bearish sentiment. Key support levels to watch include $0.1970 and $0.1935, while key resistance levels are at $0.2020 and $0.2050.