Dogecoin Price Shows Signs of Recovery
After experiencing a significant decline, Dogecoin (DOGE) found support near the $0.0595 level. The price hit a low of $0.0591 before initiating a recovery wave. It managed to move above the $0.0600 mark and settled above $0.0612.
Bitcoin’s recent steady increase above $27,000 has also had a positive impact on altcoins, including Dogecoin. DOGE was able to surpass the $0.062 resistance level. Moreover, it climbed above the 23.6% Fibonacci retracement level of the downward movement from its swing high of $0.0685 to the low of $0.0591.
Currently, DOGE is trading above the $0.062 level and the 100 simple moving average (4 hours). However, it faces resistance near the $0.0638 level and the 50% Fibonacci retracement level of the aforementioned downward move.
On the 4-hour chart of the DOGE/USD pair, a key rising channel is forming with resistance around $0.0640.
Source: DOGEUSD on TradingView.com
A successful close above the $0.0620 resistance could push the price towards the next resistance levels at $0.0670 and $0.0685. If DOGE fails to gain momentum above $0.0640, it may experience a downside correction.
Are Dips Supported in DOGE?
In case DOGE’s price fails to break above the $0.0640 level, a downside correction might occur. The initial support lies around $0.0620, followed by a major support level near $0.0600. If the price drops below this support, it could further decline towards $0.0565.
Technical Indicators
The 4-hour MACD for DOGE/USD is currently showing signs of losing momentum in the bullish zone. The 4-hour RSI (Relative Strength Index) is above the 50 level.
Major Support and Resistance Levels
Major Support Levels: $0.0620, $0.0600, $0.0565
Major Resistance Levels: $0.0638, $0.0640, $0.0685
Hot Take: Dogecoin Price Shows Resilience Amidst Market Volatility
Despite facing significant market volatility, Dogecoin has displayed resilience by initiating a recovery wave after finding crucial support near the $0.0595 level. With Bitcoin’s positive movement impacting altcoins, DOGE managed to surpass key resistance levels and is now trading above the 100 simple moving average (4 hours).
However, further gains might be limited as the price encounters resistance near $0.0638 and forms a rising channel with resistance around $0.0640 on the 4-hour chart of DOGE/USD pair.
If DOGE fails to break above these resistance levels, a downside correction could occur with initial support at $0.0620 followed by a major support level near $0.0600.
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