Dogecoin is showing positive signs above the USD 0.0642 level against the US dollar. DOGE could continue to rise if it stays above the USD 0.0606 support.
- DOGE started a decent rise above the USD 0.0642 resistance against the US dollar.
- The price is trading above the USD 0.065 level and the 100 simple moving average (4 hours).
- There was a break above a key bearish trendline with resistance near USD 0.0630 on the DOGE/USD pair’s 4-hour chart (data source from Kraken).
- The price could correct lower, but dips could be attractive near the USD 0.062 zone.
Dogecoin price begins recovery
After a major drop, Dogecoin price found support near the USD 0.055 zone. DOGE traded as low as USD 0.0557 and started a fresh increase. There was a decent move above USD 0.0600 and the price stabilized above USD 0.0606.
Recently, there was a strong increase in Dogecoin like Bitcoin and Ethereum, and it was able to clear the USD 0.0620 resistance. The price climbed above the 50% Fib retracement level from the main decline from the $0.0772 swing high to the $0.0557 low.
In addition, there was a break above a key bearish trendline with resistance near $0.0630 on the DOGE/USD pair’s 4-hour chart. It is now trading above the USD 0.065 level and the 100 simple moving average (4 hours).
On the upside, the price is facing resistance near the USD 0.0665 level. The first major resistance is near the $0.0690 level or the 61.8% Fib retracement level of the main drop from the $0.0772 swing high to the $0.0557 low.
Source: DOGEUSD at TradingView.com
A close above the USD 0.0690 resistance could push the price towards the USD 0.0725 resistance. The next major resistance is near USD 0.0780. Any further gains could send the price towards the USD 0.080 level.
Are dips supported in DOGE?
If DOGE fails to gain pace above the USD 0.0690 level, it could initiate a downside correction. The initial downside support is near the USD 0.0642 level.
The next major support is near the USD 0.0606 level. If there is a downside break below the USD 0.0606 support, the price could decline further. In the said case, the price could drop towards the USD 0.055 level.
Technical indicators
4 Hours MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.
Major Support Levels – $0.0642, $0.0625 and $0.0606.
Key resistance levels – $0.0665, $0.0690 and $0.075.