Dogecoin recently experienced a dip toward the $0.2620 support level against the US Dollar. However, DOGE is now in recovery mode, regaining lost ground, and could potentially gain further traction if it manages to surpass the $0.3350 resistance point.
Key Highlights
- DOGE price has initiated a recovery wave, moving above the $0.30 level.
- The price is currently trading above the $0.320 mark and the 100-hourly simple moving average.
- There was a break above a connecting bearish trend line, with resistance at $0.3120, on the hourly chart for the DOGE/USD pair (data sourced from Kraken).
- The price could gather momentum if it successfully clears the $0.3350 and $0.350 resistance levels.
Dogecoin Price Recovers Ground
Dogecoin embarked on a fresh decline from a position well above $0.3550, similar to other cryptocurrencies like Bitcoin and Ethereum. DOGE slipped below critical support levels at $0.3350 and $0.320, even dipping under the $0.280 mark. A low point was established at $0.2613, after which the price began to recover its losses.
The recovery saw DOGE climbing above the $0.300 level, testing the 23.6% Fibonacci retracement level of the downward move from the $0.4095 swing high to the $0.2613 low. This movement signified a break above a connecting bearish trend line with resistance marked at $0.3120 on the hourly chart of the DOGE/USD pair. Currently, Dogecoin is trading above the $0.320 threshold and maintaining its position above the 100-hourly simple moving average.
Immediate resistance on the upside is positioned near the $0.3350 level. The bulls face their first major resistance around the $0.3520 level, which corresponds to the 61.8% Fibonacci retracement level of the previous downward trajectory. A further significant resistance level is near $0.3750. Should DOGE manage a close above the $0.3750 resistance, it could propel the price towards the $0.3880 resistance, with potential gains pushing it towards the $0.40 level. The subsequent major target for the bulls might be at $0.4120.
Another Decline in DOGE?
In the event that DOGE fails to ascend past the $0.3350 resistance level, there is the possibility of another decline. The initial support level on this potential downside is close to the $0.30 mark, followed by a more robust support at $0.2850.
The main support is firmly placed at $0.2620. A break below this level could trigger a further decline in DOGE’s price. In such a scenario, the price might descend toward the $0.250 level or even lower, reaching as far as $0.2320 in the near term.
Technical Indicators
Hourly MACD
The MACD for DOGE/USD is currently gaining momentum within the bullish zone, indicating a positive trend shift.
Hourly RSI (Relative Strength Index)
The RSI for DOGE/USD is positioned above the 50 level, suggesting a favorable sentiment among traders.
Major Support Levels
- $0.3000
- $0.2850
Major Resistance Levels
- $0.3350
- $0.3500
