Why is Dogecoin down, when is the uptrend?
The DOGE, a joke coin, failed to stir investor enthusiasm. That is why the value of Dogecoin was sealed in a consolidation model. Until the dog-themed token overcomes many obstacles along with the last hurdle at $0.23, this token may continue to be stuck in a downtrend.
Dogecoin value moves in a narrow range
Dogecoin value is stuck inside a descending parallel channel on the 4-hour chart. Because DOGE continues with lower highs and lows. This token, which was produced as a joke, is trying to recover after the drop of $ 0.186 on November 26. However, it is facing the initial resistance area at the $0.208 level, which is at the middle border of the governing technical pattern.
If the Dogecoin price fails to break above the aforementioned hurdle, it may continue to consolidate. The dog-themed token could explore the first line of defense at the 78.6% Fibonacci retracement level at $0.199, then the September 26 low at $0.193.
Additionally, the $0.186 support point could emerge at the local low before Dogecoin price sets the lower bound of the current chart pattern at $0.176.
Traders should keep in mind that if Dogecoin breaks below the downward trendline of the parallel channel, it may head to a pessimistic target given by the governing technical pattern. This is the possibility of an eventual drop to $0.137 for Dogecoin price, down 22%.
To reverse the slow performance period, DOGE bulls should aim at $0.208 above the middle border of the current chart pattern. Additional resistances may appear on the 21 four-hour Simple Moving Average (SMA) at $0.213, followed by the 50 four-hour SMA at $0.221.
Another tough hurdle could emerge at the 61.8% Fibonacci retracement level of $0.232, which coincides with the MRI-given resistance line and the upper border of the parallel channel.
A breakout above the upper trendline of the governing technical pattern could indicate that the momentum of this prank token is shifting upwards, potentially targeting larger levels. However, Dogecoin price must also surpass the 200 four-hour SMA, which intersects the 100 four-hour SMA at $0.236 and the 50% retracement level at $0.254 to make up for recent losses.