Dogecoin has initiated a robust surge, moving beyond the $0.320 resistance against the US Dollar. The cryptocurrency is holding its gains and appears to be eyeing further upsides above the $0.4180 mark.
Following a pattern similar to Bitcoin, Dogecoin’s price began a fresh rally, surpassing the $0.350 resistance level. Presently, it is trading above the $0.3650 level and maintaining the momentum above the 100-hourly simple moving average. Notably, a key bullish trend line has formed, providing support at $0.3870 on the hourly chart of the DOGE/USD pair.
The price trajectory indicates potential for continued upward movement if it manages to break through the $0.400 and $0.4150 resistance levels. After clearing the initial $0.320 resistance, Dogecoin quickly gained traction, moving past the $0.3800 and $0.400 resistance benchmarks. The price even touched a high of $0.4342 before undergoing a minor correction.
Subsequently, Dogecoin’s price dipped below the $0.40 level and slightly under the 50% Fibonacci retracement level of its ascent from the $0.3519 swing low to the $0.4342 high. Despite this, bullish activity remains strong around the $0.3850 zone, helping the price maintain its position above the $0.3650 level and the 100-hourly simple moving average. The bullish trend line at $0.3870, close to the 61.8% Fibonacci retracement level of the same upward move, continues to provide sturdy support.
On the upside, immediate resistance is observed near the $0.400 level, with a more significant barrier positioned around $0.4150. Successfully closing above the $0.4150 resistance could propel the price towards the $0.4320 resistance level, and potentially to $0.4500. Continued gains might even lead Dogecoin toward the $0.4650 level.
However, should Dogecoin fail to clear the $0.4150 resistance, a downside correction could ensue. The first line of support is expected near the $0.3870 level and the existing trend line, followed closely by support at the $0.3715 level. Critical support sits at $0.3420, and a break below this could see the price decrease further, potentially hitting the $0.3150 or even $0.300 levels in the near future.
Technical indicators reflect a slight loss of momentum in the bullish zone, with the hourly MACD for DOGE/USD diminishing. Meanwhile, the hourly RSI (Relative Strength Index) remains above the 50 level, indicating sustained bullish sentiment. Major support levels are seen at $0.3870 and $0.3715, while major resistance points are at $0.4000 and $0.4150.
