Dogecoin (DOGE) Nosedives to Crucial Support: Why This Week’s Close Is Significant

Key Takeaways:

• Dogecoin’s price dived 20% and was traded below the $0.10 support.
• DOGE is testing a major bullish trend line with support at $0.0980 on the weekly chart.
• The bulls must protect a weekly close below $0.0980 to prevent more losses.

NEW DELHI (CoinChapter.com) — DOGE price trimmed most of its yearly gains and traded below $0.10. Dogecoin must stay above $0.0980 to start a recovery wave.

Dogecoin Price Turns Red

In the last DOGE price prediction, we discussed why Dogecoin faces a rocky recovery path. The price attempted a recovery wave, but the bears remained in action and prevented gains above $0.1220. As a result, there was a fresh decline below the $0.1150 support.

In the past two to three daily sessions, Bitcoin, Ethereum, and most major altcoins saw a strong bearish reaction. BTC declined below $60,000, ETH broke the $3,000 support, and BNB dived below $500. It also sparked bearish moves in DOGE, as it tumbled below the $0.1050 support.

There was a strong decline below the 61.8% Fib retracement level of the main increase from the $0.0568 swing low to the $0.2286 high. Dogecoin is now struggling to hold a crucial support zone at $0.0980.

It also tests a major bullish trend line with support at $0.0980 on the weekly chart and the 76.4% Fib retracement level of the main increase from the $0.0568 swing low to the $0.2286 high.

If DOGE bulls fail to protect a weekly close below the $0.0980 support, there could be more downsides. Immediate support on the downside is near the $0.080 level. The first major support is near the $0.0695 level.

A close below the $0.0695 support zone could send the price toward the $0.0565 pivot level. Any more losses could open the doors for a drop toward $0.040.

Recovery Ahead for DOGE?

Conversely, Dogecoin could stay above the $0.0980 support and start a recovery wave. Immediate resistance on the upside sits near the $0.1050 level. The next key resistance is near the $0.1120 zone. A close above the $0.1120 resistance could send the price toward the $0.1200 level.

The first major hurdle for the bulls could be $0.1220. A close above the $0.1220 resistance could decrease the bearish pressure and lead the price toward the $0.1420 resistance.

Overall, DOGE is signaling a major downturn. If Dogecoin price fails to stay above $0.0980 this week, there could be heady losses in the coming days. Conversely, the price might correct higher and retest the $0.1220 resistance.

The post Dogecoin (DOGE) Nosedives to Crucial Support: Why This Week’s Close Is Significant appeared first on CoinChapter.