After falling sharply, Dogecoin (DOGE) has found support near the $0.0685 zone. Following in the footsteps of Bitcoin and Ethereum, DOGE has recently embarked on a decent run, breaking through a key resistance level. In this article, we will examine DOGE’s current price action and explore potential scenarios for its future movement.
Dogecoin faced a significant breakthrough when it surpassed the $0.0720 resistance zone. Bulls took over, pushing price above the 50% Fibonacci retracement level of the downside from swing high $0.0755 to low $0.0684. Notably, there was a notable break above the significant bearish trendline, which has resistance around $0.0722, as observed on the 4-hour chart of the DOGE/USD pair.
However, the upward momentum met resistance near the $0.074 level, where the bears became active. The 76.4% Fibonacci retracement level of the move down from the swing high of $0.0755 to the low of $0.0684 acted as a strong resistance. Currently, Dogecoin is trading below the $0.0725 zone and the 100 (4-hour) simple moving average, but has maintained a critical support zone at $0.0718.
Looking ahead, an immediate hurdle for DOGE is near the $0.0722 level, followed by more significant resistance at $0.0740. If prices manage to close above the $0.074 resistance, this could pave the way for further advances towards the $0.0775 resistance. Next, the price might even head towards the $0.0800 level, and beyond that, $0.0825.
On the downside, if DOGE fails to gather momentum above the $0.074 level, it might resume its downside move. Initial support lies around the $0.0718 level, important for the short term trend. Further downside could see price testing the $0.0700 level, and if that level is broken, a slide towards the $0.0685 zone makes sense.
To assess the overall market sentiment, we can look at several technical indicators. The 4hr MACD for DOGE/USD is currently gaining momentum in the bearish zone, suggesting downward pressure. Moreover, the 4hr RSI (Relative Strength Index) is below the 50 level, indicating a bearish sentiment among traders.
Dogecoin has shown resilience by finding support and starting an upward trajectory. When facing resistance near a key level, DOGE has the potential to break and aim for a higher price target. However, failure to gain momentum above the resistance level could result in a continuation of the downward trend. Traders and investors should closely monitor the $0.074 and $0.0718 levels as important indicators for DOGE’s near-term direction.