Dogecoin has started a downward correction below the $0.400 support against the US dollar. DOGE is currently in a consolidation phase and may aim for a recent rally above $0.4050.

• DOGE price started a recent decline below the USD 0.40 level.
• The price is below the $0.4050 level and the 100-hour elementary moving average.
• A connecting bullish trendline is forming on the hourly chart of DOGE/USD with support at $0.3950 (data source from Kraken).
• The price could begin another rally if it breaks the $0.4050 and $0.4150 resistance levels.

Dogecoin price is eyeing fresh growth

Dogecoin price started a recent decline well above $0.410, unlike Bitcoin and Ethereum. DOGE was trading below the $0.4020 and $0.400 support levels. It even rose below $0.3980.

The bottom was formed at USD 0.3963 and the price is currently consolidating losses. It recovered a few points and climbed above $0.40. It has breached the 23.6% Fib retracement level, a sign of a downward move from the high of $0.4136 to the low of $0.3963.

Dogecoin price is currently trading below the $0.4050 level and the 100-hour elementary moving average. A connecting bullish trend line is also forming on the hourly chart of DOGE/USD with support at $0.3950.

Immediate upside resistance is located near the $0.4025 level. The first major resistance for bulls may be near the $0.4050 level. The next major resistance is located near the $0.4095 level or the 76.4% Fib retracement level on a downward move from the $0.4136 high to the $0.3963 low.

A close above the resistance at $0.4095 could push the price towards the resistance at $0.4150. Any further gains could push the price towards the $0.4350 level. The next major stop for bulls could be $0.4500.

More losses at DOGE?

If the DOGE price does not rise above the $0.4050 level, another decline could begin. Initial downside support is located near the $0.3980 level. The next significant support is near the USD 0.3950 level.

The main support is located at USD 0.3750. If there is a break below the support at $0.3750, the price may decline further. In this case, the price may drop towards USD 0.350 or even USD 0.3420 in the compact term.

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 below the 50 level.

Major support levels – $0.3980 and $0.3750.

Major resistance levels – USD 0.4050 and USD 0.4095.