Will Dogecoin be able to climb back to $0.1420 or is there more downside ahead?

The value of Dogecoin fell below $0.14, hovering around $0.1348, after breaching several key support levels. Technical indicators suggest a downward channel pattern that could result in further losses unless the meme coin manages to reclaim the $0.1400 resistance area.

The token experienced a drop below the $0.1450 and $0.1420 support levels, mirroring a broader market downturn affecting other major cryptocurrencies like Bitcoin and Ethereum. Data from Kraken’s hourly chart indicates that DOGE is forming a declining channel, with resistance at $0.1395, while the price remains under the 100-hourly simple moving average. The token is currently consolidating below the 23.6% Fibonacci retracement level from the swing high of $0.1539 to the low of $0.1348.

In terms of significance, there are critical levels to watch out for in the near future. The hourly MACD is showing increasing bearish momentum, although the RSI is still above 50. Key resistance levels are situated at $0.1400 and $0.1420, and a breakthrough above the latter could potentially drive prices towards $0.1445 or the 50% Fibonacci retracement level. On the downside, support levels are found at $0.1350 and $0.1320, with a major floor at $0.1280. A drop below $0.1280 could lead DOGE down to $0.120 or even $0.1180 in the short term.

It’s important to keep an eye on these levels as they could signal the direction in which Dogecoin is headed. A breach of certain support or resistance zones could trigger significant movements in the price of the meme coin in the coming days.

In conclusion, with Dogecoin currently facing challenges in maintaining its value and breaking through key levels of support and resistance, investors and traders need to exercise caution and closely monitor the developments in the market. The cryptocurrency landscape is inherently volatile, making it crucial to stay informed and prepared for any potential price fluctuations.