Dogecoin (DOGE) has demonstrated resilience following a significant price decline, finding support near the $0.0888 level. The cryptocurrency has since embarked on a recovery wave, mirroring the upward trends of Bitcoin and Ethereum.
Technical Analysis Indicates Bullish Momentum
Dogecoin’s price has successfully breached several key resistance levels, including $0.0920 and $0.0935. This upward momentum has been further reinforced by a breakout above the 50% Fibonacci retracement level of the downward move from the $0.0994 swing high to the $0.0889 low.
Additionally, Dogecoin’s price has surpassed a connecting bearish trend line with resistance at $0.0955 on the hourly chart. The cryptocurrency is now trading above the $0.0950 level and the 100-hour simple moving average.
Immediate Resistance and Potential Targets
The immediate resistance for Dogecoin lies near the $0.0970 level, or the 76.4% Fibonacci retracement level of the aforementioned downward move. A successful breach of this resistance could propel the price towards the $0.0995 level.
If Dogecoin can break through the $0.0995 resistance, the next major target is $0.1050. Further gains could lead to a surge towards the $0.1150 level, and potentially even the $0.1200 level.
Also Read : Dogecoin (DOGE) Rallies on Elon Musk’s Tweet and Bullish Sentiment – Can It Reach $0.11?
Potential for Another Decline
However, if Dogecoin fails to climb above the $0.0995 level, it could experience another downward correction. Initial support on the downside is near the $0.0938 level, with the next major support at $0.0900.
The main support for Dogecoin sits at $0.0880. A breakdown below this level could lead to a further decline, potentially targeting the $0.0850 or even $0.0835 level in the near term.
Technical Indicators
- Hourly MACD: The MACD for DOGE/USD is currently gaining momentum in the bullish zone.
- Hourly RSI: The RSI for DOGE/USD is now above the 50 level.
Dogecoin has exhibited strong resilience and bullish momentum, breaking through key resistance levels and finding support at crucial points. While the potential for a short-term decline exists, the overall technical indicators suggest a positive outlook for the cryptocurrency. Investors and traders are closely monitoring Dogecoin’s price action for further developments and potential gains.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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