Dogecoin (DOGE) Tests Critical Support, Here Are the Levels to Watch

Dogecoin (DOGE), the leading meme cryptocurrency, recently mirrored Bitcoin’s volatility, sparking market interest.

Dogecoin (DOGE) price is showing signs of recovery after a steep decline in recent weeks. The meme coin is now up over 6% in the past 24 hours, trading at $0.1112 at the time of writing.

DOGE price dropped by 16% in the past week and is still down by 85% from its all-time high. However, Blue Crypto, a renowned technical analyst, believes that DOGE might be able to recover if it can maintain crucial support levels.

According to Blue Crypto, DOGE is currently testing a critical support level at $0.107. If the price manages to stay above this level, it could potentially signal a bullish trend. However, if the support fails and the price drops below $0.107, it could indicate a shift towards a bearish trend.

Blue Crypto also highlighted that Dogecoin needs to cross and confirm new support at $0.1086 for a potential move up. The next target would be $0.1142, which is a crucial resistance level. If Doge manages to cross this level, it could indicate a bullish trend continuation.

On the technical side, Dogecoin price is facing resistance from the 50-day and 100-day Exponential Moving Averages (EMA), which are currently positioned above the price on the daily time frame. This indicates a persistent downtrend and selling pressure. The 50 EMA being below the 100 EMA further underscores the ongoing weakness and lack of bullish momentum in the market.

Other technical indicators on the daily time frame currently show a notable bearish trend. The 50-day and 100-day Exponential Moving Averages (EMA) are positioned above the price, indicating a persistent downtrend and selling pressure. The 50 EMA being below the 100 EMA further underscores the ongoing weakness and lack of bullish momentum in the market.

The Relative Strength Index (RSI) is around 39.30, placing it below the neutral 50 mark and closer to the oversold territory. An RSI in this range suggests that Dogecoin might be experiencing a prolonged period of bearishness. However, it also hints at a potential for a rebound if the selling pressure eases and buyers step in.

Meanwhile, the Awesome Oscillator (AO) shows a predominantly negative trend. The MACD line remains below the signal line, reflecting ongoing bearish pressure. The histogram bars below the zero line indicate bearish momentum. However, the narrowing gap between the MACD and the signal line, along with recent smaller red bars, suggests a possible convergence that might herald a bullish crossover.

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