Dogecoin (DOGE) Tests Crucial Support: Is This the Perfect Buy Zone?

DOGE price dipped heavily below the $0.3420 support. Dogecoin spiked and tested the key support near the 50-week simple moving average (blue).

Dogecoin Price Hits Key Pivot Zone

In the past few days, Bitcoin, Ethereum, XRP, Dogecoin, and other cryptocurrencies saw many swing moves. DOGE declined heavily below the 0.3765 and $0.3420 support levels to enter a short-term bearish zone. The bears even pushed the price below the $0.300 level.

Finally, there was a nasty spike below the $0.240 support and the price tested the key support at $0.200 and the 50-week simple moving average (blue). A low was formed at $0.2020, and the price is now correcting losses.

Dogecoin reacted strongly to the upside and cleared the $0.2250 resistance level. It tested the 23.6% Fib retracement level of the recent decline from the $0.4845 swing high to the $0.2020 low.

The current price action suggests a strong bullish reaction from the 50-week simple moving average (blue). There is also a key parabolic curve forming with support at $0.2250 on the weekly chart. However, the bulls face many challenges in the short term.

Immediate resistance on the upside sits near the $0.2680 level. The next key resistance is near the $0.300 zone. A close above the $0.300 resistance could send the price toward the $0.3440 level. It is close to the 50% Fib retracement level of the recent decline from the $0.4845 swing high to the $0.2020 low.

If the bulls push the price above $0.3440, the price could drift toward the $0.3760 resistance level. Any more gains might open the doors for a move to $0.440.

Another Decline In DOGE?

Conversely, Dogecoin might fail to continue higher above the $0.300 level and react to the downside. Immediate support on the downside is near the $0.2480 level. The first major support is near the $0.2250 level and the parabolic curve.

A close below the parabolic curve could spark heavy bearish moves. The main support zone sits at $0.200 and the 50-week simple moving average (blue). If the bulls fail to protect the $0.20 support, there could be a medium-term downtrend. In the stated case, the price could drop toward the $0.1320 support. Any more losses could open the doors for a drop toward $0.080.

Overall, DOGE is correcting losses from the key support. However, Dogecoin must stay above $0.2250 to start a fresh increase in the coming days. Conversely, it could trim gains and test the $0.20 support.

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