Here Are The Main Levels To Watch After Dogecoin Price Completed A Clean Kumo Rejection
Alex Smith
1 month ago
Dogecoinâs H4 chart has delivered an interesting bearish signal. According to a technical analysis published by popular Dogecoin analyst Trader Tardigrade on X, DOGE has just executed a clean rejection from the Kumo, the cloud resistance zone of the Ichimoku technical indicator. That failure is now shaping the next phase of Dogecoinâs price action.
The Kumo Held Firm: What The Rejection Signals
The technical chart shows that the Dogecoin price, which has been trading below the Ichimoku cloud, rallied into the lower boundary of the indicator, only to stall and reverse at a strong resistance zone.
The rejection occurred as the Dogecoin price attempted to push into the cloud from below on the H4 timeframe into a zone Trader Tardigrade identified as strong resistance in the $0.09512 to $0.09564 range. Price tested the underside of the cloud and was denied, and this led to a downward reversal. The analyst noted that when the cloud holds in this manner, the market typically respects it, adding that the episode was Ichimoku analysis at its finest.
The rejection confirms that sellers are still defending the $0.09512 to $0.09564 range very hard. For context, trading below the Kumo places the Dogecoin price in a bearish Ichimoku structure. The rejection served to confirm resistance, while also reaffirming the broader technical regime.Â
Price Levels To Watch
Trader Tardigradeâs H4 Ichimoku chart identified two important price levels that will determine whether Dogecoinâs rally will extend further.
The first is the Kumo zone, spanning between $0.09512 and $0.09564, which the analyst designates as strong resistance. This is the range that capped the most recent rally and produced the clean rejection. The bearish structure on the H4 chart will stay intact as long as the price is trading below this band. Any push back into this zone should be monitored carefully for another potential rejection.
Just below that lies the Kijun-sen at $0.09354, which is labelled as the medium-strength resistance level. This baseline sits just beneath the cloud and is the first meaningful resistance that Dogecoin bulls must clear before any recovery attempt can be taken seriously. A failure to break above $0.09354 on a retest would lead to further downside pressure.
At the time of writing, Dogecoin is trading at $0.09087, down by 2.6% in the past 24 hours, meaning it has extended its losses since it encountered a clean Kumo rejection. On the downside, the short-term outlook is for continuation below current price levels following the rejection, with the Ichimoku cloud offering no support levels, given that price is already trading under it.
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