Dogecoin experienced a robust surge, breaking above the $0.180 resistance against the US Dollar, signaling a potential for continued gains if it can surpass the $0.220 resistance. Following a pattern similar to Bitcoin, DOGE initiated its rally by climbing past $0.180 and is now trading comfortably above this level and the 100-hour simple moving average.
In a significant technical development, the DOGE/USD pair breached a key bearish trend line at $0.1620. This breakout propelled the price above $0.2000, forming a high at $0.2200 before entering a consolidation phase above the 23.6% Fibonacci retracement level, measured from the $0.1654 low to the $0.2200 high.
Currently, Dogecoin is holding steady above $0.200 and maintaining its position relative to the 100-hourly simple moving average. Immediate resistance is noted near $0.2150, with another significant barrier at $0.2200. An upward close beyond $0.220 could drive the price to the $0.2320 mark, and potentially further to $0.2420, with a bullish target of $0.250 on the horizon.
However, should Dogecoin fail to break past the $0.2150 resistance, it might face a retracement. Initial downside support is found around $0.2080, with a more substantial support level at $0.1920, aligning with the 50% Fib retracement level from the swing low of $0.1654 to the recent $0.2200 high. The crucial support level sits at $0.1780, and a breach below this point could lead to further declines, potentially revisiting the $0.1650 or even $0.1620 level.
Technical indicators reflect mixed signals, with the hourly MACD for DOGE/USD gaining momentum in the bearish zone. Meanwhile, the Relative Strength Index (RSI) for DOGE/USD stands above the 50 level, indicating potential resilience against a downward trend.
Crucial support levels to monitor include $0.2080 and $0.1920, while resistance levels of $0.2150 and $0.2200 remain key to further upward movement.
