Dogecoin (DOGE) is building an accumulation structure ahead of a possible breakout

Dogecoin corrected some gains and fell below USD 0.1050 against the US dollar. DOGE currently holds support at $0.10 and may pursue novel gains.

DOGE price has started a novel downward correction below $0.1120.
The price is below the $0.1050 level and the 100-hour uncomplicated moving average.
A descending channel is forming on the hourly chart of the DOGE/USD pair with resistance at USD 0.1020 (data source from Kraken).
The price may look to rise again if it remains stable above $0.10.

Dogecoin price faces resistance

Dogecoin price has started a downward correction after failing to stay above $0.1150, along with Bitcoin and Ethereum. DOGE fell below the $0.1100 and $0.1080 levels.

There has been a move below the 50% Fib retracement level, which is an upward move from the low of $0.0878 to the high of $0.1175. Before the bulls emerged, the price even rose below $0.10. The price is currently forming a base above USD 0.10 and preparing for the next move.

A descending channel is also forming on the hourly chart of the DOGE/USD pair with resistance at USD 0.1020. Dogecoin price is currently trading below the $0.1050 level and the 100-hour uncomplicated moving average. Immediate upside resistance is located near the $0.1020 level. The first major resistance for bulls may be near the $0.1070 level.

The next major resistance is near the $0.1120 level. A close above the resistance at $0.1120 could send the price towards $0.1150. Any further gains could push the price towards $0.1180. The next major stop for bulls could be $0.120.

Another DOGE decline?

If the DOGE price does not rise above the $0.1020 level, it may continue to decline. Initial downside support is near the $0.10 level.

The next major support is located near the $0.0945 level or the 76.4% Fib retracement level, representing an upward move from the low of $0.0878 to the high of $0.1175. The main support is located at USD 0.0920. If there is a break below the support at $0.0920, the price may decline further. In this case, the price may move towards the level of USD 0.0875 or even USD 0.0865 in the near future.

Technical indicators

Hourly MACD – The MACD for DOGE/USD is currently losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is currently above the 50 level.

Major support levels – USD 0.1000 and USD 0.0945.

Major resistance levels – $0.1020 and $0.1070.