Dogecoin made a nice rise towards its previous high last week, but was unfortunately rejected here. Since then, the coin seems to be making a decline again towards $0.125, a place where the coin will hopefully find support. Let’s look at the graphs.
How is DOGE doing?
We’ll start this analysis with a look at the daily chart. Here each candle represents 24 hours, giving us a good idea of the most important price levels. We also get a good idea of the price action of the past week here.
Dogecoin has left several price levels in the past that still influence the price. These are shown in the graph above as gray zone, blue zone and red zone. There is also a blue line that we will come back to later.
We can leave the gray one for what it is, since this price is far removed from the current price. Still, it is good to have this level clear for the future. The red and blue zones are slightly more important.
As you can see, the blue zone has created significant resistance. Almost every time the coin arrived here, at a price of around $0.10, the price was pushed back. This only changed when the currency broke through. The reaction – a huge increase of 105% – shows how positive such a break can be.
Will DOGE go back to $0.125?
Since then, the currency has entered another price level: the red zone of around $0.125. This is the spot that stops the coin from dropping to the blue zone. This can be seen in the many reactions surrounding this price point. To analyze this better, let’s also take a look at the 4-hour chart. Here each candle represents 4 hours.
This way we get a better picture of the red zone, which currently offers the strongest support. We also see the blue line here, which originates from a previous height. The last time DOGE bounced off this support and tried to get past it, it didn’t work.
This does not necessarily mean something bad, as the price is still trading above the important red support, but it does appear that the currency will fall further. Only when the coin rises above this blue line will the price start to look more positive in the long term. Until then, it seems as if the currency wants to move towards the red zone of $0.125 again.
