- Dogecoin price is sealed within the prevailing consolidation pattern.
- The canine-themed token is seeking a credible line of defense at $0.133 to prevent further decline.
- The lower boundary of the governing technical pattern may act as a buying opportunity before DOGE bulls prepare to rebound.
Dogecoin price is presenting a buying opportunity as DOGE explores the reliability of key support at the lower boundary of the governing technical pattern. If a credible foothold develops at $0.133, a bounce toward the upside may be in the offing.
Dogecoin price slides lower before a bounce back
Dogecoin price has formed a parallel channel on the daily chart as DOGE continues to consolidate and confuse forecasts. The canine-themed token is likely to continue to move sideways between clearly defined technical levels.
Dogecoin price may continue to be sealed within the prevailing chart pattern, between the upper and lower boundaries.
While selling pressure has increased, as indicated by the Arms Index (TRIN), DOGE may fall further to tag the lower boundary of the governing technical pattern at $0.133, which should act as reliable support for Dogecoin price.
If Dogecoin price manages to rebound, DOGE will face immediate resistance at the 21-day Simple Moving Average (SMA) at $0.161, then at the 50-day SMA at $0.168. An additional hurdle will emerge at the 23.6% Fibonacci retracement level at $0.179.
Dogecoin price will meet another challenge at the middle boundary of the prevailing chart pattern at $0.209, where the 100-day SMA and 38.2% Fibonacci retracement level intersect.
DOGE/USDT daily chart
Dogecoin price may be confronted with a stiff obstacle at the 61.8% Fibonacci retracement level at $0.258, coinciding with the resistance line given by the Momentum Reversal Indicator (MRI).
Bigger aspirations will target the upper boundary of the prevailing chart pattern at $0.305, which would result in a 100% bounce.
However, if the bulls fail to reverse the period of sluggish performance, Dogecoin price may fall further toward the December 4 low at $0.130.