Dogecoin started a decent gain from the $0.0685 support against the US Dollar. DOGE could rally if it clears the $0.074 resistance zone.
- DOGE is currently struggling to clear the $0.074 resistance against the US dollar.
- The price is trading below the $0.0725 zone and the 100 simple moving average (4 hours).
- There was a break above a major bearish trendline with resistance near $0.0722 on the DOGE/USD pair’s 4-hour chart (data source from Kraken).
- The pair could start another rally if it breaks the $0.0740 resistance zone.
Dogecoin Price Aims Higher
After a sharp drop, Dogecoin price found support near the $0.0685 zone. DOGE formed a base and recently started a decent rise above $0.070, similar to Bitcoin and Ethereum.
There was clear movement above the $0.0720 resistance zone. The bulls pushed the price above the 50% Fib retracement level of the downward move from the $0.0755 swing high to the $0.0684 low. In addition, there was a break above a major bearish trendline with resistance near $0.0722 on the DOGE/USD pair’s 4-hour chart.
However, the bears were active near the $0.074 resistance. Dogecoin was rejected near the 76.4% Fib retracement level of the downward move from the $0.0755 swing high to the $0.0684 low.
Doge is now trading below the $0.0725 zone and the 100 simple moving average (4 hours). It is holding the key support zone at $0.0718. On the upside, the price is facing resistance near the $0.0722 level. The first major resistance is near the $0.0740 level.
Source: DOGEUSD at TradingView.com
A close above the $0.074 resistance could push the price towards the $0.0775 resistance. The next major resistance is near $0.0800. More gains could push the price towards the $0.0825 level.
Interruption in DOGE?
If the price of DOGE fails to move faster than the $0.074 level, it could drop further. The first support on the downside is near the $0.0718 level.
The next major support is near the $0.0700 level. If there is a downside break below the $0.070 support, the price could move further. In the said case, the price may fall towards the $0.0685 level.
Technical indicators
4am MACD – The MACD for DOGE/USD is now gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.
Main Support Levels – $0.0718, $0.070 and $0.0685.
Key resistance levels – $0.0722, $0.0740 and $0.0775.