Dogecoin Price Shows Positive Signs Above $0.085
In recent sessions, the price of Dogecoin has seen a decent increase from the $0.080 support zone, breaking through several key resistance levels.
A significant breakthrough occurred when the price surpassed the resistance at $0.0820, which was part of a contracting triangle on the 4-hour chart of the DOGE/USD pair. It also cleared the $0.0850 resistance level.
Although Bitcoin and Ethereum experienced greater gains, Dogecoin managed to reach a high near $0.0883 before consolidating its gains.
The current price is trading above the 23.6% Fibonacci retracement level and the 100 simple moving average (4 hours), indicating positive momentum.
Resistance Levels and Possible Rally Extension
Resistance near the $0.0880 level poses a challenge for Dogecoin’s price. However, if it manages to surpass this level, the next major resistance is expected near $0.0920.
A close above this resistance could potentially propel the price towards the $0.095 resistance and even as high as $0.100. Further gains might even push the price towards $0.120.
Possible Downside Correction
If Dogecoin fails to gain momentum above the $0.0880 level, a downside correction may occur. Initial support is expected near the $0.0860 level.
If there is a further decline below this support, the next major support can be found near $0.0840 or at the 50% Fibonacci retracement level of the recent increase.
A break below this support could lead to a decline towards the $0.0820 level.
Technical Indicators and Support/Resistance Levels
The MACD indicator for DOGE/USD on the 4-hour chart is currently losing momentum in the bullish zone, while the RSI is above the 50 level.
Major support levels are identified at $0.086, $0.084, and $0.082, while major resistance levels are at $0.088, $0.092, and $0.10.
Hot Take: Dogecoin Price Shows Promising Signs of Growth
Despite facing resistance at key levels, Dogecoin has managed to break through important barriers and enter a positive zone. With continued momentum, it has the potential to extend its rally and reach higher resistance levels.
However, if it fails to maintain its upward trajectory, a downside correction may occur. It will be crucial to watch for support levels in order to gauge the future movement of Dogecoin’s price.
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