Dogecoin started a fresh decline below $0.2620 and $0.250. DOGE price is signaling a bearish turn and might extend losses to $0.20.
Dogecoin Price Takes Hit
In the last few days, Dogecoin price saw heavy bearish moves. The bulls failed to keep the price in a bullish zone above $0.280, sparking an increase in selling interest. The price dropped below the $0.2620 and $0.250 support levels.
More importantly, DOGE traded below a key bullish trend line with support at $0.2280 on the daily chart. There was a close below the 76.4% Fib retracement level of the upward move from the $0.2050 swing low to the $0.3064 high, underperforming Bitcoin.
Dogecoin is now showing bearish signs below $0.250 and the 50-day simple moving average. The current price action and the last two daily candles signal an increase in bearish pressure.
Immediate support on the downside is near $0.220. The next major support sits near $0.2050 and the swing low. If the bulls fail to defend $0.2050, the price might accelerate lower and drop toward $0.20. The first major target for the bears could be $0.1810 since it is close to the 1.236 Fib extension level of the upward move from the $0.2050 swing low to the $0.3064 high.
A downside break and close below $0.1810 might spark heavy bearish moves and might call for a test of the $0.1620 region. Any more losses might send DOGE to the 1.618 Fib extension at $0.1423.
Recovery Could Be Capped In DOGE?
If Dogecoin finds support near $0.220 or $0.205, it could attempt to recover. Immediate resistance on the upside is near $0.2320 and the same trend line. The first major hurdle sits at $0.240 and the 50-day simple moving average.
A close above $0.240 could send DOGE to $0.250. To start a fresh increase and negate the current bearish pressure, the price must settle above $0.250. In the stated case, the price could rally and test $0.280. The next key target might be $0.30. Any more gains might send the price toward the $0.320 hurdle in the coming days.
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Overall, DOGE is consolidating losses below $0.240 and $0.250. The bears remain in action, and they could soon target a move to $0.20 in the near term.
