Dogecoin's Bearish Sentiment Prevails Despite Recovery Attempts

Market Movement Overview

The price of DOGE encountered hurdles around the $0.0950 level, prompting a downturn against the US dollar. Presently, the price resides below the $0.090 level and the 100 simple moving average (4 hours), illustrating a challenging situation for the cryptocurrency.

Technical Analysis and Key Resistances

A significant bearish trend line has taken shape, indicating resistance around $0.0920 on the 4-hour chart of the DOGE/USD pair (sourced from Kraken). A prospective recovery wave might commence if DOGE manages to surpass the hurdles at $0.090 and $0.0950.

Current Scenario and Downside Potential

DOGE struggled to gain momentum beyond $0.0920, consequently starting a fresh decline alongside Bitcoin and Ethereum. The downward move led to a substantial drop beneath the $0.0900 and $0.0865 support levels, testing the $0.0760 zone. While a slight recovery ensued with a breach of the $0.080 resistance area, it remains within a confined scope.

However, DOGE's price is still contending with the $0.0875 resistance, close to the 61.8% Fib retracement level from its recent swing high at $0.0943 to the low of $0.0760. The subsequent major resistance sits at $0.090, followed by a substantial barrier at $0.095. Further upward movements could potentially target the $0.105 level.

Potential Downtrend Scenarios

Should DOGE falter in its attempt to surpass the $0.0875 hurdle, it might prompt a renewed decline. Initial support lies at approximately $0.080, with a critical level at $0.0760. A breach below this level could initiate further downward movement, potentially targeting the $0.0710 range.

Technical Indicators Overview

The 4-hour MACD for DOGE/USD indicates increasing bearish momentum, while the 4-hour RSI sits below the 50 level, reinforcing the current bearish sentiment.

Key Levels to Watch

Key support levels: $0.080, $0.0760, and $0.0710.

Key resistance levels: $0.0875, $0.0920, and $0.0950.