Analyst Sarah Tran thinks that Dogecoin (DOGE) price can continue its downtrend until it overcomes a series of hurdles with the recent resistance at $0.23.
Dogecoin price caps in a narrow range
According to the analyst, the reason why Dogecoin price is stuck inside a parallel channel on the 4-hour chart is due to the look of the HL and HH levels. DOGE is attempting to recover after falling from $0.186 on Nov. 26, but is facing the $0.208 resistance area at the middle border of the formation. If the price of Dogecoin fails to rise above this level, the consolidation process may continue. Analyst, 78%. It also awaits a test of the 6 Fibonacci retracement level of $0.199 and then the September 26 low of $0.193.
Continuing at the critical supports, additional support may be found at $0.186 before setting the lower bound of the below formation at $0.176. If the price dips below the downtrend line, Dogecoin investors should keep in mind that eventual bottoms towards $0.137, a pessimistic target of 22%, are on the table. So, what levels await the bulls? Let’s continue with this question…
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According to Sarah Tran, whose analysis we shared as , Dogecoin bulls can target $0.208, which falls above the middle border of the formation, to reverse the downtrend. Additional resistances are $0.213 at the 21-day SMA, followed by $0.221 at the 50 four-hour SMA. 61% from $0.232, which coincides with the resistance line given by the MRI indicator and the upper boundary of the parallel channel. The 8 Fibonacci retracement level reveals another tough hurdle.
Reaching above the upper trendline of the formation will suggest an upward shift in meme coin momentum and potentially higher highs being targeted. However, DOGE price must also surpass the 100 four-hour SMA at $0.236 and the 200 four-hour SMA, which intersects with the 50% retracement level at $0.254, in an attempt to recoup recent losses.