Dogecoin slumped by 30.62% on Wednesday. Following on from a 2.32% decline on Tuesday, Dogecoin ended the day at $0.3303.
A bullish start to the day saw Dogecoin rise to an early morning intraday high $0.4794 before hitting reverse.
Falling short of the first major resistance level at $0.5330, Dogecoin tumbled to a mid-day intraday low $0.2079.
The sell-off saw Dogecoin slide through the day’s major support levels.
More significantly, Dogecoin also fell through the 38.2% FIB of $0.4618 and the 62% FIB of $0.2882.
Finding afternoon support, Dogecoin briefly broke back through the 62% FIB and the third major support level at $0.3947.
A bearish end to the day, however, saw Dogecoin slide back through the third major support level to end the day at $0.33 levels.
At the time of writing, Dogecoin was down by 5.85% to $0.3110. A mixed start to the day saw Dogecoin rise to an early morning high $0.3469 before falling to a low $0.2951.
Dogecoin left the major support and resistance levels untested early on.
For the day ahead
Dogecoin would need to move through the $0.3392 pivot to bring the 38.2% FIB of $0.4618 and the first major resistance level at $0.4705 into play.
Support from the broader market would be needed, however, for Dogecoin to break back through to $0.40 levels.
Barring an extended crypto rally, the 38.2% FIB and the first major resistance level would likely cap any upside.
In the event of a broad-based crypto rebound, Dogecoin could test resistance at Wednesday’s high $0.4794 before any pullback. The second major resistance level sits at $0.6107.
Failure to move through the $0.3392 pivot would bring the 62% FIB of $0.2882 and the first major support level at $0.1990 into play.
Barring another extended sell-off, however, Dogecoin should steer clear of sub-$0.20 levels. The second major support level sits at $0.0677.
A sustained fall through the 62% FIB of $0.2882 would form a near-term bearish trend from 8th May’s swing hi $0.7427.
Looking at the Technical Indicators
First Major Support Level: $0.1990
Pivot Level: $0.3392
First Major Resistance Level: $0.4705
23.6% FIB Retracement Level: $0.5691
38.2% FIB Retracement Level: $0.4618
62% FIB Retracement Level: $0.2882
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