- Dogecoin's bulls battle to secure support at the 50 SMA on the four-hour chart.
- The MACD indicator has been accentuated the bearish outlook.
- Dogecoin's transaction history reveals the presence of immense resistance.
Dogecoin trading has remained sideways since the beginning of April. The primary battle is to secure higher support, allowing bulls to focus on recovery. However, both technical and on-chain levels lean on the bearish side. In other words, it would be a challenge for the bulls to shift the attention and push for gains.
Dogecoin Least Resistance Path is Downward
At the time of writing, Dogecoin is trading at $0.056. This follows a correction from the 61% Fibonacci level's resistance. Moreover, bulls are most likely to lose immediate support at the 50% Fibo. If the bearish leg extends, Dogecoin will seek support at the 50 Simple Moving Average on the four-hour chart.
The Moving Average Convergence Divergence (MACD) indicator adds credence to the bearish outlook by expending the gap below the signal line. Additionally, the trend momentum indicator also has a bearish impulse as it moves toward the negative region.
DOGE/USD four hour chart
The IOMAP model by IntoTheBlock highlights intense resistance ahead of Dogecoin based on its transaction history. For instance, the region between $0.062 and $0.063 is the most robust hurdle. Here, around 15,300 addresses previously scooped up roughly 6.6 billion DOGE. Besides this seller congestion zone, other relatively more substantial resistance zones exist to limit movement.
On the downside, Dogecoin sits on solid support levels. For instance, buyer congestion between $0.055 and $0.056 is unlikely to be broken. Here, approximately 111,500 addresses had bundled up roughly 8.5 billion DOGE. If this support holds and the resistance mentioned above remains intact, Dogecoin will settle for consolidation.
Dogecoin IOMAP chart
Looking at the Other Side of the Fence
If Dogecoin holds above the 50% Fibonacci and, by extension, the 50 SMA on the four-hour chart, bulls will start to renew the uptrend. Moreover, the ongoing consolidation will eventually culminate in a breakout, mainly if the key support stays intact. Resistance should be anticipated, particularly at $0.06 and $0.065.