Dogecoin is consolidating gains above the $0.320 resistance level against the US Dollar. DOGE holds its gains and eyes further rises above $0.400.
- DOGE price started to consolidate like Bitcoin and remained above the $0.320 resistance level.
- The price is trading near the $0.3750 level and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance at $0.3670 on the hourly chart of the DOGE/USD pair (data source from Kraken).
- The price can continue rising if it crosses the $0.400 and $0.4150 resistance levels.
Dogecoin prices are eyeing a new high
Dogecoin price has started a consolidation phase above the $0.320 area like Bitcoin and Ethereum. DOGE has formed a base above $0.350 and is currently rising.
There was a move above the $0.3550 and $0.3620 resistance levels. The price rose above the 23.6% Fibonacci retracement level of the downward move from the swing high at $0.4342 to the swing low at $0.3400. There was also a break above the major downtrend line with resistance at $0.3670 on the hourly chart of the DOGE/USD pair.
Dogecoin price is now trading near the $0.3750 level and the 100 hourly simple moving average. Immediate resistance on the upside is near the $0.3720 level.
The next major resistance is near the $0.3880 level or the 50% Fib retracement level of the downward move from the $0.4342 high to the $0.3400 low. A close above the $0.3880 resistance level could send the price towards the $0.400 resistance level. Any further gains may push the price towards the $0.4200 level. The next major stop for the bulls could be $0.500.
Are declines limited in DOGE?
If DOGE price fails to rise above $0.3720 level, it may start a downward correction. Initial support on the downside is located near the $0.3650 level. The next major support is near the $0.3500 level.
The main support is located at $0.320. If a bearish breakout occurs below the $0.320 support level, the price could fall further. In the mentioned case, the price may fall towards the $0.300 level or even $0.2950 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 – $0.3650 and $0.3500.
Key resistance levels – $0.3720 and $0.3880.
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