Dogecoin (DOGE) Bulls Flex Strength: Momentum Builds for Next Move
Dogecoin has started a fresh rise against the US Dollar above the $0.350 area. DOGE is currently consolidating and may gain traction if it breaks the $0.3880 resistance.
- DOGE price started a new round of gains, breaking above $0.350 and $0.3650.
- The price is trading above the $0.370 level and the 100 hourly simple moving average.
- There is a break above the connecting bearish trend line with resistance at $0.3825 on the hourly chart of the DOGE/USD pair (data source from Kraken).
- The price is likely to gain momentum if it breaks the $0.3880 and $0.3920 resistance levels.
Dogecoin Price Holds Support
Dogecoin price starts fresh rise from $0.3120 support, e.g. Bitcoin and Ethereum. DOGE was able to break above the $0.3350 resistance and $0.350. It even broke above the $0.3880 level before a downside correction occurred.
A low was formed at $0.3750 and the price is currently rising. There was a break above the $0.380 resistance. Additionally, there was a break above the connecting bearish trend line with resistance at $0.3825 on the hourly chart of the DOGE/USD pair.
The pair climbed above the 50% Fib retracement level of the downward move from the swing high of $0.3986 to low of $0.3750. Dogecoin price is currently trading above the $0.380 level and the 100 hourly simple moving average.
Immediate resistance on the upside is near $0.3880, the 61.8% Fibonacci retracement level of the downward move from the $0.3986 swing high to $0.3750 low. The first major resistance level for bulls is likely to be near $0.3920.
The next major resistance is near $0.40. A close above the $0.40 resistance may push the price towards the $0.420 resistance. Any more gains may push the price towards $0.4380 levels. The next major stop for the bulls is likely to be $0.450.
DOGE falls again?
If the price of DOGE fails to climb above $0.3880, another decline could begin. Initial support on the downside is near $0.380. The next major support is near $0.3750.
The main support level is $0.3650. If it breaks below the $0.3650 support, the price may decline further. In the above scenario, the price may drop towards $0.350 or even $0.3420 levels in the short term.
Technical indicators
Hourly MACD – The MACD for DOGE/USD is currently losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is currently above the 50 level.
Major support levels – $0.380 and $0.3750.
The main resistance levels – $0.3880 and $0.3920.
