Dogecoin Dips Below $0.20 Support, Targeting $0.16

Dogecoin price is correcting gains below the $0.200 support zone. The recent technical analysis in the previous updates showed how the Dogecoin price failed to clear the $0.2550 resistance zone. The price started a downside correction below the $0.2320 support zone.

As the cryptocurrency market slides, Dogecoin is dipping more than Bitcoin and Ethereum to enter a short-term bearish zone. There was a close below the $0.220 and $0.2120 support levels. The price dipped below the 50% Fib retracement level of the upward move from the $0.1298 swing low to the $0.2594 high. More importantly, there was a break below a key bullish trend line with support at $0.1950 and the 50-day simple moving average on the daily chart.

Dogecoin price is now trading below the $0.20 support and the 50-day simple moving average. The current price suggests that DOGE is struggling and might continue to move down.

If there is a recovery wave, the price could face many hurdles. Immediate resistance on the upside sits near the $0.1950 level and the 50-day simple moving average. The first major resistance is near the $0.20 level. A close above the $0.1950 and $0.20 resistance levels could set the pace for a larger increase.

In the stated case, the price could rise and drift toward the $0.2120 level. The next key resistance sits near the $0.2280 level. Any more gains might send DOGE price toward the $0.2550 level in the coming days.

Conversely, Dogecoin might struggle to surpass the $0.1950 resistance or $0.20. In the stated case, the price could continue to move down. Immediate support on the downside is near the $0.1720 level.

The next major support sits at the $0.160 level. It is close to the 61.8% Fib retracement level of the upward move from the $0.1298 swing low to the $0.2594 high. If there is a close below the $0.160 support, the price might accelerate lower and drop toward the $0.1320 support in the medium term.

The main support could be $0.120. A downside break and close below the $0.120 support might spark heavy bearish moves and might call for a test of the $0.10 level.