Dogecoin, the popular cryptocurrency that started as a meme, has been gaining momentum in recent times. With its price surpassing the $0.085 zone against the US Dollar, many investors are now wondering if DOGE will continue its upward rally. In this article, we will analyze the current market trends and technical indicators to assess the potential future movement of Dogecoin.
Positive Signs in DOGE’s Price
In the past few sessions, Dogecoin has witnessed a decent increase from the $0.080 support zone. It successfully cleared several hurdles near $0.0820, indicating a shift to a positive zone. Additionally, there was a notable break above a key contracting triangle with resistance at $0.0820 on the 4-hour chart of the DOGE/USD pair. Subsequently, DOGE breached the $0.0850 resistance level.
Although Dogecoin experienced upside movements, the extent of these gains was relatively lesser compared to other cryptocurrencies like Bitcoin and Ethereum. The price formed a high near $0.0883 and is currently in a consolidation phase. Notably, DOGE is now trading above the 23.6% Fibonacci retracement level of the recent increase from the $0.0795 swing low to the $0.0883 high. Additionally, it is maintaining its position above the $0.0865 level, supported by the 100 simple moving average (4 hours).
Potential Resistance Levels
As Dogecoin continues its upward momentum, it faces resistance near the $0.0880 level. If it manages to surpass this resistance, the next major hurdle would be at the $0.0920 level. A successful close above $0.0920 could propel the price towards the $0.095 resistance. Further gains might even lead to a breakthrough of the $0.100 mark, with the potential to reach $0.120.
However, if DOGE fails to gather enough momentum to surpass the $0.0880 level, a downside correction might occur. Initial support on the downside is expected near the $0.0860 level. A further decline could test the major support at around $0.0840, which represents the 50% Fibonacci retracement level of the recent increase. A break below this level could trigger more selling pressure, potentially leading to a decline towards the $0.0820 level.
Technical Indicators
Analyzing the technical indicators, the MACD for DOGE/USD on the 4-hour chart is currently displaying a loss of momentum in the bullish zone. However, the Relative Strength Index (RSI) is above the 50 level, indicating positive market sentiment.
Dogecoin has shown promising signs of a potential rally above the $0.088 and $0.095 resistance levels. With the recent positive market trends and the support of the 100 simple moving average (4 hours), DOGE might continue its upward momentum. However, it is essential to be aware of the potential risks and market fluctuations associated with investing in cryptocurrencies. As always, thorough research and analysis are crucial before making any investment decisions.