Dogecoin has embarked on a new upward journey, breaking past the $0.350 threshold against the US Dollar. As DOGE consolidates its gains, it could gather momentum if it surpasses the crucial $0.3880 resistance level.
Key Highlights
- DOGE price initiated a notable rise above the $0.350 and $0.3650 levels.
- The cryptocurrency is currently trading above the $0.370 mark and maintaining strength over the 100-hourly simple moving average.
- A significant breakthrough occurred above a connecting bearish trend line, with the resistance pegged at $0.3825 on the hourly chart of the DOGE/USD pair, according to data from Kraken.
- Potential momentum could be garnered if the price clears the $0.3880 and $0.3920 resistance points.
Dogecoin Price Holds Support
Dogecoin’s price journey began with a fresh increase from the $0.3120 support level, mirroring movements seen in Bitcoin and Ethereum. DOGE successfully overcame the $0.3350 and $0.350 resistance points. It briefly crossed the $0.3880 level before undergoing a minor corrective decline.
Following a downturn, a low was established at $0.3750, from where the price commenced its upward movement. It surpassed the $0.380 resistance, and interestingly, there was a breach above a connecting bearish trend line with resistance located at $0.3825 on the hourly chart of the DOGE/USD pair.
The currency ascended above the 50% Fibonacci retracement level of the prior decline, which ranged from the $0.3986 high to the $0.3750 low. Currently, Dogecoin is trading above the $0.380 level and is well-supported by the 100-hourly simple moving average.
Resistance and Potential Upsides
On the upside, immediate resistance is positioned near the $0.3880 level, aligning with the 61.8% Fibonacci retracement of the recent decline from the $0.3986 high to the $0.3750 low. The first significant resistance for bullish traders is anticipated around the $0.3920 mark.
Progressing further, the next major resistance target stands near the $0.40 level. A decisive closure above this resistance could propel the price towards the $0.420 resistance zone. Further gains may even drive the price to the $0.4380 level, with the subsequent target for bulls potentially being $0.450.
Another Decline In DOGE?
However, if DOGE fails to break the $0.3880 barrier, there could be another downside movement. Initial support is expected near the $0.380 level, with the next significant support situated around $0.3750.
The primary support level is anchored at $0.3650. In the event of a downward breach below this point, the price could experience a further decline. Under these conditions, it is plausible for the price to drop towards the $0.350 level, or even reach the $0.3420 level in the short term.
Technical Indicators
- Hourly MACD: The MACD for DOGE/USD is gradually losing momentum within the bearish zone.
- Hourly RSI (Relative Strength Index): The RSI for DOGE/USD is currently above the 50 level, indicating a positive momentum.
- Major Support Levels: $0.380 and $0.3750.
- Major Resistance Levels: $0.3880 and $0.3920.
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