After a significant increase at the end of January, Dogecoin (DOGE) reached an all-time high price of $0.086 on Feb. 7. However, it was rejected at this level and has been moving downwards since.
While DOGE is trading above a strong support area, there are no clear signs that would confirm the direction of the trend.
Furthermore, on Feb. 28, a new DOGE protocol called Dogecoin Core 1.14.3 was released. This comes as compelling news for a cryptocurrency that has been mostly dormant since 2019, with the exception of a few positive tweets about it from Elon Musk.
DOGE Returns to Support
DOGE has been decreasing since reaching an all-time high price of $0.086 on Feb. 7. So far, the drop has taken DOGE all the way to a local low of $0.041, which was reached on Feb. 23.
This was just above the $0.045 support area, which is the 0.5 Fib retracement level of the entire upward move and a previous resistance area. This level is now likely to act as support.
Despite being at support, DOGE has not bounced significantly and technical indicators are neutral, failing to confirm the direction of the trend.
The two-hour chart shows that DOGE has been following a descending resistance line since the aforementioned all-time high price.
While the RSI and MACD support the possibility of a breakout, one has not occurred yet. The short-term trend cannot be considered bullish until it does.
If a breakout occurs, DOGE would be expected to move towards the all-time high resistance area at $0.08.
Cryptocurrency trader @Altcoinsherpa outlined a DOGE/BTC chart, stating that the pair is trading right under resistance.
Since the tweet, DOGE has fallen slightly but is still trading above support at 100 satoshis.
The area previously had been acting as resistance since 2018 and is also the 0.618 Fib retracement level of the most recent upward movement.
Since technical indicators are relatively bullish, the DOGE trend is considered bullish as long as a close below this level is not reached.
If DOGE begins to move upwards, the next closest resistance area would be found at 220 satoshis.
Despite being at support, there are no definite signs that would confirm that the trend for DOGE/USD is bullish. However, it can be considered so as long as DOGE is trading above the $0.045 support area.
Similarly, the DOGE/BTC trend can be considered bullish as long as the price is trading above 100 satoshis.