Dogecoin Retail Investors Believed in a Rebound, Got Blindsided... If $0.1 Fails to Hold, a Plunge Market

▲ Dogecoin(DOGE)

Dogecoin (DOGE) has once again failed to break above $0.1050 and has been pushed down to the $0.10 support level, raising more warnings of further decline than expectations of a short-term rebound.

According to crypto media outlet NewsBTC on May 27 (local time), Dogecoin began a downward correction after failing to surpass the $0.1050 zone. Dogecoin fell below $0.1035 and $0.1020, and is currently trading below $0.1020 and the 100-hour simple moving average.

According to Kraken data, a bearish trend line has formed on the Dogecoin-to-USD hourly chart with resistance at $0.1020. Dogecoin fell below the 50% Fibonacci retracement level of the upward move from the $0.0968 low to the $0.1048 high, and buying interest emerged after temporarily testing below $0.10 during the session.

For a short-term rebound, recovering $0.1020 has been presented as the primary task. The first major resistance is at $0.1036, and the next major resistance is at $0.1050. If the closing price forms above $0.1050, Dogecoin could aim for $0.1088, and in case of further upside, $0.1120 and $0.1150 were mentioned as the next target zones.

Conversely, analysis suggests that if Dogecoin fails to rise above $0.1020, the downtrend could continue. The initial support is at $0.10, which is close to the 61.8% Fibonacci retracement level of the upward move from the $0.0968 low to the $0.1048 high. The next major support is presented at $0.0985, and the key support at $0.0965.

If the $0.0965 support level breaks, Dogecoin's decline could accelerate further. NewsBTC analyzed that if this support level is breached, Dogecoin could fall to $0.0920, and if further losses continue, there's a possibility of retesting $0.0880. The hourly Moving Average Convergence Divergence (MACD) is increasing its downward momentum in the bearish zone, and the hourly Relative Strength Index (RSI) remains below 50.

NewsBTC presented Dogecoin's major support levels at $0.1000 and $0.0965, and major resistance levels at $0.1020 and $0.1050. The analysis suggests that if Dogecoin holds the $0.10 support level, a rebound attempt is possible, but if it gives up $0.0965, short-term downward pressure could intensify.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*