Dogecoin tumbled by 20.89% on Wednesday. Reversing a 9.61% gain from Tuesday, Dogecoin ended the day at $0.3909.
A mixed start to the day saw Dogecoin rise to an early morning intraday high $0.5229 before hitting reverse.
Falling short of the first major resistance level at $0.5470, Dogecoin slid to a late intraday low $0.3800.
Dogecoin fell through the first major support level at $0.4423 and the 38.2% FIB of $0.4618.
The extended sell-off also saw Dogecoin fall through the second major support level at $0.3905 before ending the day at $0.3909.
At the time of writing, Dogecoin was up by 11.06% to $0.4341. A mixed start to the day saw Dogecoin fall to an early morning low $0.3503 before rising to a high $0.4363.
Dogecoin left the major support and resistance levels untested early on.
For the day ahead
Dogecoin would need to avoid a fall back through the $0.4313 pivot to bring the 38.2% FIB of $0.4618 and the first major resistance level at $0.4825 into play.
Support from the broader market would be needed, however, for Dogecoin to break out from $0.45 levels.
Barring an extended crypto rally, the first major resistance level and resistance at $0.50 would likely cap any upside.
In the event of another breakout, Dogecoin could test resistance at the 23.6% FIB of $0.5691 and the second major resistance level at $0.5742.
Failure to avoid a fall back through the $0.4313 pivot would bring the first major support level at $0.3396 into play.
Barring another extended sell-off, however, Dogecoin should steer clear of sub-$0.30 levels. The second major support level sits at $0.2884.
Looking at the Technical Indicators
First Major Support Level: $0.3396
Pivot Level: $0.4313
First Major Resistance Level: $0.4825
23.6% FIB Retracement Level: $0.5691
38.2% FIB Retracement Level: $0.4618
62% FIB Retracement Level: $0.2882
Please let us know what you think in the comments below.
This article was originally posted on FX Empire