Key Takeaways:
– Dogecoin (DOGE) recently started a new rally that led to a Jump of 10%+.
– This surge above the $0.180 resistance level replicates the trend seen in Bitcoin and Ethereum.
– DOGE’s clearing of the $0.2150 and $0.2200 resistance levels is expected to continue its upward trajectory.
– If DOGE’s price fails to climb above the $0.2150 level, it may experience another decline.
– The MACD of DOGE/USD indicates growth in momentum within the bearish zone.
Dogecoin Gets a Boost
Popular digital currency, Dogecoin (DOGE), recently initiated a fresh rally, demonstrating similar trends to that of Bitcoin and Ethereum. The rally saw DOGE climb above the $0.180 resistance level, where it continues to trade above the 100-hourly simple moving average. The break has made room for a bullish momentum in the near term as its price crossed key thresholds.
Breaking Barriers
During the rally, DOGE made a breakthrough above a key bearish resistance line of $0.1620, as recorded on the hourly chart for DOGE and USD trade pair. Surging past the $0.2000 mark, a high was established at $0.2200, and began to consolidate. It held strong above the 23.6% Fibonacci retracement level from the upward move starting at $0.1654 to the recent peak.
Potential Upside
Dogecoin is currently trading above the $0.200 level and the 100-hourly simple moving average, suggesting a positive shift in market sentiment. It faces immediate resistance at the $0.2150 and $0.2200 levels. Overcoming this resistance may push DOGE’s price towards the $0.2320, and any further success could steer it towards the $0.2420 level or the bull’s next potential resting point at $0.250.
Dips and Supports
However, success is not a guarantee. If DOGE fails to climb above $0.2150, it might be poised for another decline, with the first support found at $0.2080. Should it breach that, the next strong support is expected around the $0.1920 level, coinciding with the 50% Fibonacci retracement level of the initial swing low to the recent high.
In the event of a downside break below $0.1780, DOGE’s price could fall further towards the $0.1650 level or even $0.1620 in the short term.
Technical Indicators Overview
The Moving Average Convergence Divergence (MACD) for DOGE/USD is currently gaining momentum in the bearish zone, signaling potential for further bearish movements. On the other hand, the Relative Strength Index (RSI) for DOGE/USD is now above the 50 level, indicating positive buying pressure in the market.
In Conclusion
Dogecoin’s fresh surge is a testament to the volatile and dynamic nature of the cryptocurrency market. This potentially profitable movement comes with a careful prediction of DOGE’s future, as market indicators point towards both bullish and bearish momentum. The next major tests for the coin will be the $0.2150 and $0.2200 resistance levels, and the direction of its price movement beyond that will determine the overall short-term sentiment surrounding DOGE.