“Retail Investors Might Get Burned Again”...Dogecoin at Risk of Breaking Below $0.1

▲ Dogecoin (DOGE)/AI-generated image

Dogecoin (DOGE) attempted to rebound from the $0.1020 range but remained below the $0.1075 resistance level and the 100-hour simple moving average, failing to escape the risk of further decline. Although short-term technical indicators showed some signs of recovery, strong selling pressure continues to limit upward movement.

NewsBTC reported on May 21 (local time) that Dogecoin began a recovery from $0.1020 and rose above $0.1040, but the sustainability of its upward movement could be determined around $0.1075. On the DOGE/USD hourly chart, a breakout above a bearish trend line with resistance at $0.1040 was confirmed.

Dogecoin surpassed the 23.6% Fibonacci retracement level of the downtrend from the $0.1127 high to the $0.1021 low. However, the price is still trading below $0.1075 and the 100-hour simple moving average. If further recovery continues, initial resistance is around $0.1062, with major resistance identified at $0.1075. This level also coincides with the 50% Fibonacci retracement level of the downtrend.

If Dogecoin closes above the $0.1088 resistance, it could rise to the $0.1120 resistance level. Subsequently, if further upward momentum develops, $0.1150 would become the next target, and if the bullish trend continues, $0.1165 is presented as the main upside zone.

Conversely, if it fails to surpass $0.1075, a downward trend could resume. The initial downside support is $0.1040, and the next major support is $0.1020. The key support level is identified as $0.10. If it breaks below $0.10, Dogecoin could short-term drop to $0.09650 or $0.0950.

Technical indicators leave some room for a short-term rebound. The DOGE/USD hourly Moving Average Convergence Divergence (MACD) is gaining momentum in the bullish zone, and the hourly Relative Strength Index (RSI) is above the 50 level. However, if it fails to overcome the $0.1075 and $0.1120 resistance levels, the recovery trend is likely to be limited, and the defense of the $0.10 support level remains a key variable determining the short-term direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*