Dogecoin started a new rally above the $0.220 resistance level against the US Dollar. DOGE is up more than 50% and shows signs of further upside.
- DOGE price started a new rally like Bitcoin and rose above the $0.220 resistance level.
- The price is trading above the $0.2800 level and the 100 hourly simple moving average.
- There is a major uptrend line forming with support at $0.280 on the hourly chart of the DOGE/USD pair (data source from Kraken).
- The price can continue rising if it crosses the $0.3050 and $0.3120 resistance levels.
Dogecoin price looks forward to further gains
Dogecoin price started a new rise after it reclaimed the $0.200 resistance level like Bitcoin and Ethereum. DOGE managed to accelerate the move above the $0.2200 and $0.250 resistance levels.
The pair rose above $0.3000. A top was formed at $0.3036 and the price is now consolidating above the 23.6% Fib retracement level of the upward move from the swing low of $0.2013 to the swing high of $0.3036. There is also a major uptrend line forming with support at $0.280 on the hourly chart of the DOGE/USD pair.
Dogecoin price is now trading above the $0.2880 level and the 100 hourly simple moving average. Immediate resistance on the upside is near the $0.300 level. The next major resistance is near the $0.3050 level.
A close above the $0.3050 resistance level could send the price towards the $0.3120 resistance level. Any further gains may send the price towards the $0.34500 level. The next major stop for the bulls could be $0.350.
Are declines limited in DOGE?
If DOGE price fails to rise above the $0.3050 level, it may start a downward correction. Initial support on the downside is located near the $0.280 level and trend line. The next major support is located near the $0.2680 level.
The main support is located at $0.2550 or 50% Fibonacci retracement level of the upward move from the swing low of $0.2013 to the swing high of $0.3036. If a bearish breakout occurs below the $0.2550 support level, the price could fall further. In the mentioned case, the price may fall towards the $0.2420 level or even $0.2350 in the near term.
Technical indicators
Hourly MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.
Key support levels – $0.280 and $0.2680.
Key resistance levels – $0.3000 and $0.3050.