Dogecoin is attempting a recovery wave above the $0.0585 resistance against the US Dollar. DOGE could rise if it clears the $0.065 resistance area.
- DOGE is currently struggling to clear the $0.0628 resistance against the US Dollar.
- The price is trading below the $0.065 area and the 100 simple moving average (4 hours).
- There is a major bearish trend line forming with resistance near $0.0635 on the 4-hours chart of DOGE/USD (data source from Kraken).
- The pair could start a fresh rise if it clears the $0.065 resistance area.
Dogecoin price eyes restored
After a sharp decline, Dogecoin price found support near the $0.0554 area. DOGE formed a base and recently started a nice recovery above $0.058, similar to Bitcoin and Ethereum.
There was a clear move above the $0.0585 resistance area. The bulls pushed the price above the 23.6% Fibonacci retracement level of the downside move from the $0.0714 swing high to $0.0554 low. The price is now consolidating above $0.060.
DOGE is still trading below the $0.065 area and the 100 simple moving average (4 hours). There is also a major bearish trend line forming with resistance near $0.0635 on the 4-hours chart of the DOGE/USD pair.
On the upside, the price is facing resistance near the $0.0628 level. The first major resistance is near the $0.0635 level and the trend line. It is close to the 50% Fibonacci retracement level of the downside move from $0.0714 swing high to $0.0554 low.
source: DOGEUSD on TradingView.com
Closing above the $0.0635 resistance could send the price towards the $0.065 resistance. The next major resistance is near $0.0675. Any further gains could send the price towards the $0.070 level.
More losses in DOGE?
If DOGE price fails to rise above the $0.0635 level, it may continue to decline. Initial support is located on the downside near the $0.0595 level.
The next major support is near the $0.0580 level. If there is a bearish break below the $0.0585 support, the price could drop further. In the mentioned case, the price may decline towards the $0.0554 level.
Technical indicators
4-hour MACD – The MACD for DOGE/USD is gaining momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.
Key Support Levels – $0.0595, $0.0580, $0.0554.
Key Resistance Levels – $0.0628, $0.0635, $0.0650.