Dogecoin price has been sliding after its big July rally, now trading around $0.2043. According to veteran trader Matthew Dixon, the chart is showing a clear correction, and traders should keep a close eye on a few key support and resistance levels.
DOGE hit $0.2875 at the height of its last rally but hasn’t been able to hold onto those gains. Since then, the price has been making lower highs and lower lows inside a descending channel, which usually signals that sellers are still in control.
Dixon points out that Dogecoin price is now struggling to break above the 0.618 Fibonacci retracement at $0.2075. Until it can push past that level with real momentum, any bounce is likely to be short-lived.
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Moreover, the RSI tells the same story, it recently climbed from oversold levels near 30 to about 45, but it’s still below 50, which shows the recovery is weak for now.
Dogecoin Price Key Levels to Watch
DOGE is at a support zone of $0.1962 to $0.1820. A break below $0.1820 can lead towards a decline to $0.1789, with additional lower targets around $0.1565 to $0.1408.
In a worst-case panic scenario, Dixon’s chart shows the next extension all the way down at $0.1118.
On the flip side, the first big resistance sits at $0.2075. A strong move above this level could open the door to $0.2155, then $0.2237 to $0.2348, and even $0.2460 to $0.2539 if bulls regain control.
Dixon says Dogecoin next move depends on how it reacts around $0.1960 and $0.2075. Holding above support and breaking out over $0.2075 could start a recovery toward higher levels. But if DOGE price falls by $0.1960, the market could see another leg down.
DOGE is still in the phase of correction for now, and traders are on guard as the chart likes defense until there is a breakout on clear terms.
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