Dogecoin (DOGE) has recently embarked on a fresh increase, bouncing above the $0.350 mark against the US Dollar. Currently, it is in a phase of consolidation, with potential for further gains should it overcome the critical resistance at $0.3880.
- DOGE’s price shows a promising start, having surged past the $0.350 and $0.3650 hurdles.
- The current trading position is firmly above $0.370, alongside the 100-hourly simple moving average.
- A significant break occurred above a bearish trend line with resistance at $0.3825, as evidenced in the hourly chart for the DOGE/USD pair (data sourced from Kraken).
- The potential for momentum growth is evident if the price successfully clears the resistance levels at $0.3880 and $0.3920.
Dogecoin Price Holds Support
Initiating its rise from a notable support level of $0.3120, Dogecoin’s trajectory parallels similar bullish movements seen in both Bitcoin and Ethereum. Following its successful breaches of the $0.3350 and $0.350 resistance levels, DOGE briefly surpassed the $0.3880 target before experiencing a minor corrective phase.
A local low was established at $0.3750, and from there, the price is on an upward trajectory, effectively overcoming the $0.380 resistance threshold. Additionally, the break above the bearish trend line at $0.3825 on the hourly chart marks a critical point for DOGE.
Moreover, the price has climbed above the 50% Fibonacci retracement level concerning its prior decline from the $0.3986 swing high to the $0.3750 low. Currently, Dogecoin is trading robustly above the $0.380 mark, supported by the 100-hourly simple moving average.
On the upside, immediate resistance is identified near the $0.3880 threshold, coinciding with the 61.8% Fibonacci retracement level of the downward move from the $0.3986 peak to the $0.3750 low. The first significant resistance for bullish traders could be around $0.3920.
The next major resistance to look for is in the vicinity of the $0.40 level. A close above this critical resistance could propel the price towards the $0.420 mark, with further gains possibly pushing it toward $0.4380. For bullish traders, the next major target could be set around $0.450.
Another Decline In DOGE?
Conversely, should DOGE’s price fail to breach the $0.3880 resistance, there exists the potential for another decline. Initial support is positioned around $0.380, with subsequent major support located at $0.3750.
The primary support remains at the $0.3650 level. A breakdown below this threshold could signal further declines, with potential drops extending toward the $0.350 mark, or even $0.3420 in the near term.
Technical Indicators
- Hourly MACD: The MACD for DOGE/USD is currently losing momentum within a bearish zone.
- Hourly RSI (Relative Strength Index): The RSI for DOGE/USD has now risen above the 50 level.
Major Support Levels: $0.380 and $0.3750.
Major Resistance Levels: $0.3880 and $0.3920.
