Dogecoin dived towards the support at $0.2620 against the US dollar. DOGE is now recovering losses and could gain strength if it clears the USD 0.3350 resistance.
- DOGE price started a recovery wave above the USD 0.30 level.
- The price is trading above the USD 0.320 level and the 100-hour simple moving average.
- There was a break above a connecting bearish trendline with resistance at $0.3120 on the hourly chart of the DOGE/USD pair (Kraken data source).
- The price could gain strength if it breaches the USD 0.3350 and USD 0.350 resistance levels.
Dogecoin price recovers ground
The Dogecoin price started a new decline well above $0.3550, like Bitcoin and Ethereum. DOGE traded below the USD 0.3350 and USD 0.320 support levels. It even peaked below $0.280.
A low was formed at $0.2613 and the price is now recovering losses. It recovered some points and climbed above $0.300. It tested the 23.6% Fib retracement level of the downward move from the $0.4095 swing high to the $0.2613 low.
There was a break above a connecting bearish trendline with resistance at $0.3120 on the hourly chart of the DOGE/USD pair. The Dogecoin price is now trading above the $0.320 level and the 100-hourly moving average.
The immediate resistance on the upside is near the $0.3350 level. The first major resistance for the bulls could be near the $0.3520 level or the 61.8% Fib retracement level of the downward move from the $0.4095 swing high to the $0.2613 low.
The next major resistance is around the $0.3750 level. A close above the resistance at $0.3750 could send the price towards the resistance at $0.3880. Any further gains could send the price towards the USD 0.40 level. The next big stop for the bulls could be $0.4120.
Another drop in DOGE?
If DOGE price fails to rise above the USD 0.3350 level, it could trigger another decline. The initial downside support is near the $0.30 level. The next major support is near the $0.2850 level.
The main support is at $0.2620. If there is a downside break below the USD 0.2620 support, the price could fall further. In the mentioned case, the price could fall to the USD 0.250 level or even USD 0.2320 in the short 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.
Major support levels – USD 0.3000 and USD 0.2850.
Major resistance levels – $0.3350 and $0.3500.