Dogecoin Shows Positive Momentum, Eyeing A Fresh Rally Above Key Resistance Level
Dogecoin (DOGE) is showing encouraging upside above the $0.0620 resistance level against the US dollar. Despite trading below the $0.064 zone and the 100 (4hr) simple moving average, the DOGE recently broke a key bearish trend line, suggesting potential for a fresh rally.
Price Breakout and Bullish Momentum:
The notable break occurred on Kraken’s 4-hour DOGE/USD chart as DOGE crossed a significant bearish trend line near the $0.0620 resistance. These developments indicate a positive shift in market sentiment. While the price is currently trading below the $0.064 zone and the 100 (4-hour) simple moving average, a successful clearing of the $0.064 resistance zone could trigger a new wave of buying pressure.
Recovery after Forming a Base:
After building a base above the $0.0550 level, Dogecoin witnessed a steady rise in price. Over the last two sessions, DOGE has been bullish following Bitcoin and Ethereum’s upside, surpassing the $0.0580 and $0.060 resistance levels. Price advanced above the 50% Fibonacci retracement level, suggesting a recovery from the slide between the swing high of $0.0715 and the low of $0.0554.
Resistance and Potential Upside Targets:
While price is facing resistance near the 100 (4hr) simple moving average, the immediate hurdle lies at the $0.0655 level and the 61.8% Fibonacci retracement level of the decline above. A successful close above the $0.0655 resistance could push the price towards the $0.0685 resistance, followed by a major resistance near $0.070. Further gains could push the price towards $0.072, indicating an optimistic outlook for DOGE.
Support Levels and Potential Weaknesses:
A fresh decline is possible if the price fails to gather momentum above the $0.0640 level. Initial support on the downside can be expected near the $0.0625 level, followed by the key support zone at $0.060. A break below the $0.0600 support could result in a further downside move towards the $0.0550 level. Traders should closely monitor these key levels for potential trading opportunities.
Conclusion:
Dogecoin’s recent break above a bearish trend line and positive price action suggests potential for a fresh rally. However, careful monitoring of key support and resistance levels is advised.
