Dogecoin (DOGE) has been making significant gains in the cryptocurrency market, recently breaking above the $0.065 resistance against the US Dollar. This surge in price has given DOGE enthusiasts hope for a potential rally of over 20%, should it clear the crucial $0.070 resistance zone.
Following a period of consolidation, DOGE started a decent increase above the $0.0625 resistance level against the US Dollar. However, it is worth noting that the price is trading slightly below the $0.0650 level and the 100 simple moving average (4 hours). Despite this, there is a ray of hope for DOGE holders as a key bullish trend line is forming with support near $0.0650 on the 4-hour chart of the DOGE/USD pair (data source from Kraken).
The recent surge in DOGE can be attributed to the overall positive sentiment in the cryptocurrency market, especially with the remarkable upward movement of Bitcoin and Ethereum. Dogecoin managed to break the $0.060 resistance zone, which propelled it into a positive zone. Consequently, this led to steady gains above the $0.0650 resistance zone.
As of now, DOGE is trading above the $0.065 level and the 100 simple moving average (4 hours). However, the price is currently encountering resistance near the $0.0685 level. It is worth noting that there is a key bullish trend line forming with support near $0.0650 on the 4-hour chart of the DOGE/USD pair.
The first major resistance lies near the $0.0685 level, which poses a substantial challenge for DOGE to overcome. Moreover, there is a critical resistance zone at $0.070. Should DOGE successfully breach this resistance, it would likely catapult the price towards the $0.0735 resistance level. If the bullish momentum persists, DOGE might even reach the next major resistance near $0.0750. Given the positive sentiment surrounding Dogecoin, further gains might push the price toward the $0.080 level.
On the downside, if DOGE fails to gain momentum above the $0.070 level, a potential downside correction may occur. Initial support is expected near the $0.0665 level, followed by a more significant support zone near $0.0650. In the event of a break below the $0.0650 support, the price could decline further. In such a scenario, the price might fall towards the $0.0632 level or the 50% Fibonacci retracement level of the recent increase from the $0.0574 swing low to the $0.0693 high.
In terms of technical indicators, the 4-hour Moving Average Convergence Divergence (MACD) for DOGE/USD is currently gaining momentum in the bullish zone. Additionally, the Relative Strength Index (RSI) for DOGE/USD is above the 50 level, indicating positive market sentiment.
All eyes are now on Dogecoin as it continues its upward trajectory in the cryptocurrency market. With a potential rally of over 20% if it manages to clear the $0.070 resistance zone, DOGE holders are eagerly awaiting the outcome. However, a cautious approach is necessary, as the market remains unpredictable. Traders and investors should closely monitor the key support and resistance levels mentioned to make informed decisions about their DOGE positions.
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