Dogecoin is showing signs of recovery after dipping to the $0.1020 zone against the US Dollar. The cryptocurrency has managed to gain some ground and is now trading above the $0.1120 level, as well as surpassing its 100-hourly simple moving average.
The rebound commenced with a fresh increase that pushed Dogecoin past the $0.1100 resistance mark. Notably, there was a break above a major bearish trend line at $0.1100 on the hourly DOGE/USD chart. This movement has allowed the price to overcome previous hurdles at $0.1060 and $0.1080, setting the stage for a promising trend.
During the rally, Dogecoin’s value moved past the 23.6% Fibonacci retracement level calculated from the $0.1320 swing high to the $0.1012 low. Currently, immediate resistance looms near $0.1165, which aligns with the 50% Fibonacci retracement of the same decline. If the price can clear this level, the next significant barrier would be at $0.1180. Surpassing $0.1180 could open the door for Dogecoin to target the $0.1240 and potentially $0.1265 levels, with $0.1320 as a subsequent major target for bullish traders.
Conversely, failure to break past the $0.1165 resistance could trigger another downturn. Initial support on the downside rests at $0.1120, followed by a more substantial support level at $0.1100. The primary safety net lies around $0.1080. If Dogecoin falls below this threshold, it could experience deeper losses toward $0.1020 or even the $0.0980 level.
Technical analysis suggests that the hourly MACD for DOGE/USD is currently gaining traction in the bullish zone. Additionally, the hourly RSI (Relative Strength Index) has risen above the 50 mark, indicating strengthening momentum. The major support levels to watch are $0.1120 and $0.1080, while key resistance levels are positioned at $0.1165 and $0.1240.