Dogecoin (DOGE) is correcting gains after a rally. The price is now approaching a few key support levels.

Dogecoin Price Trims Gains

In the last technical analysis, we saw a steady increase in Dogecoin price above the $0.220 and $0.240 round-off levels. The bulls were able to push the price toward $0.2600 before the bears appeared. The price started a fresh decline below the $0.2500 round-off level.

There was a close below the $0.2320 and $0.2280 support levels, which acted as immediate resistance on Friday, unlike Bitcoin, which bounced back above the Fib levels. The price dipped below 23.6% Fib retracement level of the upward move from the $0.1297 swing low to the $0.2594 high.

Dogecoin is still well above the 50-day simple moving average. The current price suggests that DOGE is now approaching a couple of key support levels. There is also a major bullish trend line forming with support at $0.1950 on the daily chart.

If the trend line holds, the price could bounce back. Immediate resistance on the upside sits near the $0.2280 level. The first major resistance is at the $0.2320 level. A close above the $0.2280 and $0.2320 resistance levels could set the pace for a larger increase.

In the stated case, the price could surge and drift toward the $0.250 level. The next key resistance sits at the $0.2620 level. Any more gains might send DOGE price toward the $0.30 level in the coming days.

Are Dips Supported In DOGE?

Conversely, if Dogecoin fails to break above the $0.2280 or $0.2320 resistance, it might struggle to continue rising. In the stated case, the price could continue to move down. Immediate support on the downside is at the $0.20 level.

The next major support sits at the $0.1950 level and the trend line. It is close to the 50% Fib retracement level of the upward move from the $0.1297 swing low to the $0.2594 high. More importantly, the 50-day simple moving average is also near the trend line.

If there is a close below the $0.1950 support, the price might drop toward the $0.1880 support in the medium term. The main support could be $0.160. A downside break and close below the $0.160 support might spark heavy bearish moves and might call for a test of the $0.1300 level.

Overall, DOGE is approaching a few key support levels. If DOGE stays above the $0.1950 support, there could be a fresh increase. If not, it could drop and test the $0.160 support.