Dogecoin Price Hits Key Pivot Zone

In the past few days, Bitcoin, Ethereum, XRP, Dogecoin, and other cryptocurrencies saw many swing moves. DOGE declined heavily below the 0.3765 and $0.3420 support levels to enter a short-term bearish zone.

Dogecoin price dipped heavily below the $0.3420 support. Afterward, DOGE spiked and tested the key support near the 50-week simple moving average (blue).

Dogecoin Price Hits Key Pivot Zone

In the past few days, Bitcoin, Ethereum, XRP, Dogecoin, and other cryptocurrencies saw many swing moves. Following a massive rally, DOGE declined heavily below the 0.3765 and $0.3420 support levels to enter a short-term bearish zone. The bears even pushed the price below the $0.300 level.

Finally, there was a nasty spike below the $0.240 support and the price tested the key support at $0.200 and the 50-week simple moving average (blue). A low was formed at $0.2020, and the price is now correcting losses.

Dogecoin reacted strongly to the upside and cleared the $0.2250 resistance level. It tested the 23.6% Fib retracement level of the recent decline from the $0.4845 swing high to the $0.2020 low.

The current price action suggests a strong bullish reaction from the 50-week simple moving average (blue). There is also a key parabolic curve forming with support at $0.2250 on the weekly chart. However, the bulls face many challenges in the short term.

Immediate resistance on the upside sits near the $0.2680 level. The next key resistance is near the $0.300 zone. A close above the $0.300 resistance could send the price toward the $0.3440 level. It is close to the 50% Fib retracement level of the recent decline from the $0.4845 swing high to the $0.2020 low.

If the bulls push the price above $0.3440, the price could drift toward the $0.3760 resistance level. Any more gains might open the doors for a move to $0.440.

Another Decline In DOGE?

Conversely, Dogecoin might fail to continue higher above the $0.300 level and react to the downside. Immediate support on the downside is near the $0.2480 level. The first major support is near the $0.2250 level and the parabolic curve.

A close below the parabolic curve could spark heavy bearish moves. The main support zone sits at $0.200 and the 50-week simple moving average (blue). If the bulls fail to protect the $0.20 support, there could be a medium-term downtrend. In the stated case, the price could drop toward the $0.1320 support. Any more losses could open the doors for a drop toward $0.080.

Overall, DOGE is correcting losses from the key support. However, Dogecoin must stay above $0.2250 to start a fresh increase in the coming days. Conversely, it could trim gains and test the $0.20 support.