Dogecoin is currently making an effort to recover from the $0.1280 support zone against the US Dollar. The price is now trading above the $0.1500 level and the 100 simple moving average on a 4-hour chart. However, despite these positive movements, DOGE could potentially face some challenges ahead in the form of resistance levels.
One of the key obstacles that Dogecoin may encounter is the $0.170 resistance zone. There is a bearish trend line forming with resistance at $0.170 on the 4-hour chart of the DOGE/USD pair, sourced from Kraken. In order to enter a positive zone and initiate a fresh surge, the price must successfully settle above $0.170.
After experiencing a significant decline, Dogecoin found a level of support at $0.1280. This support led to a recovery wave, similar to what Bitcoin and Ethereum have experienced. The price managed to surpass the $0.1350 and $0.140 resistance levels. Additionally, it climbed above the 23.6% Fib retracement level from the downward wave that spanned from the $0.2093 swing high to the $0.1283 low.
Despite these positive movements, the bears remain active and are impeding further gains. Dogecoin is currently below the $0.1650 level and the 100 simple moving average on a 4-hour chart. The price faces resistance near $0.1690, along with the 50% Fib retracement level from the downward wave. The next major resistance levels are $0.170, $0.1880, and $0.200.
If Dogecoin fails to gain momentum above the $0.170 level, it may face another decline. The initial support on the downside is located near $0.1525, with the next major support at $0.1475. Should the price break below the $0.1750 support, further decline could be imminent, possibly leading the price back towards the $0.1280 level.
At this juncture, the 4-hour MACD for DOGE/USD is displaying momentum in the bullish zone. The 4-hour RSI has also surpassed the 50 level, indicating a positive outlook. The major support levels for Dogecoin are $0.1525, $0.1475, and $0.1280, while the major resistance levels are $0.1690, $0.1700, and $0.200.
Dogecoin’s current state suggests a struggle to overcome the resistance levels ahead. While there has been a recovery wave from the support zone, the presence of bearish trend lines and active bears may hinder further gains. It is crucial for Dogecoin to break above the $0.170 level in order to pave the way for additional surges. Investors are advised to conduct thorough research and analysis before making any investment decisions.
