Dogecoin (DOGE) Sentiment Shifts —’Sell the Rally’ Becomes the New Strategy

DOGE price dipped heavily below the $0.20 support. Dogecoin is now well below the 50-week simple moving average (blue) and at risk of more losses.

Dogecoin Price Approaches Key Support

In the past few days, Bitcoin, Ethereum, XRP, Dogecoin, and other cryptocurrencies saw a major decline. DOGE declined heavily below the 0.2250 and $0.200 support levels to enter a bearish zone. The bears even pushed the price below the $0.180 level.

There was a clear move below the 76.4% Fib retracement level of the key move from the $0.0807 swing low to the $0.4853 high. The price even settled below the $0.180 level and the 50-week simple moving average (blue). Finally, the bulls appeared near the $0.1280 support zone.

Dogecoin price weekly chart | Source: DOGEUSD on TradingView.com

Dogecoin is now consolidating losses and attempting to start a recovery wave. There was a minor increase above the $0.1350 and $0.1480 levels. The price is now trading just above the $0.150 level, but it faces many hurdles on the way up.

If there are additional gains, DOGE could struggle near the $0.1750 resistance zone (a multi-touch zone). The next key resistance is near the $0.200 zone and the 50-week simple moving average (blue). A close above the $0.200 resistance could decrease the bearish pressure and start a steady increase.

In the stated case, the price could rise toward the $0.2350 level. If the bulls push the price above $0.2350, the price could drift toward the $0.2620 resistance level. Any more gains might open the doors for a move toward the $0.2825 resistance zone.

Another Decline for DOGE?

Conversely, Dogecoin might fail to recover above the $0.1750 resistance or $0.200 and start another drop. Immediate support on the downside is near the $0.1420 level. The first major support is near the $0.1350 level.

A close below the $0.1350 level could even push the price below the $0.1280 support zone. The next support could be $0.1020. The main support zone sits at $0.080. If the bulls fail to protect the $0.080 support, there could be heavy losses.

In the stated case, the price could drop toward the $0.0550 support. Any more losses could open the doors for a drop toward $0.0420.

Overall, DOGE is consolidating losses in a bearish zone below $0.20. If there is a recovery wave, the bears might take a stand near the $0.1750 and $0.200 resistance levels.