Dogecoin (DOGE), 0.1 dollar breakthrough a trick?...If support breaks, 'cliff'

▲ Dogecoin (DOGE)

Dogecoin (DOGE) has repeatedly failed to break through key resistance levels, pushing it below the congested area of moving averages. The attempted breakthrough last month only resulted in a short-term rebound, indicating that a long-term downtrend is re-emerging.

According to U.Today on September 18 (local time), Dogecoin encountered resistance again in the $0.090-$0.092 range, then immediately fell back into the congested area of moving averages, and is currently trading around the $0.0813 level. In August, it surged from approximately $0.070 to $0.094, temporarily showing a long wick above $0.10, generating expectations. However, buying interest failed to settle above the long-term moving average, currently located around $0.093. A second breakthrough attempt in September also failed, forming a downward pattern with lower highs. It was pushed back below the short-term moving averages positioned between $0.082 and $0.084.

Technical indicators also point to a slowdown in buying momentum. The Relative Strength Index (RSI) continues to decline and remains in the neutral zone, showing no clear signs of a revival in buying interest. The $0.079-$0.080 range is identified as the immediate key support area. Recently, a long lower wick formed at this price level, indicating some low-price buying entering the market.

The risk of further decline remains, depending on whether the downside support level holds. If the daily support level breaks, downward pressure could expose $0.076, as well as the past accumulation zone of $0.070-$0.072. To revive the rebound, it must first quickly reclaim the $0.084-$0.085 level. Above this, a thicker major resistance zone of $0.090-$0.094 stands in the way.

Until the technical resistance levels are surpassed, it is increasingly likely that last month's rally failed to reverse the broader downtrend. Price defense at key support levels and the recovery of short-term moving averages are critical turning points to prevent further declines in Dogecoin.

[Key Article Summary]

-Dogecoin (DOGE) repeatedly failed to break the $0.090-$0.092 resistance level and retreated to the $0.0813 level.

-With the Relative Strength Index (RSI) declining and remaining in the neutral zone, defending the $0.079-$0.080 support level has become urgent.

-If this support level collapses, it could fall to $0.070-$0.072, requiring a quick recovery to $0.084-$0.085.

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