Dogecoin rallied over 25% and cleared the $0.090 resistance against the US Dollar. DOGE is correcting gains and might find fresh bids near the $0.088 support.
- DOGE gained pace and traded above the $0.090 resistance against the US dollar.
- The price is trading well above the $0.085 zone and the 100 simple moving average (4 hours).
- There is a key bearish trend line forming with resistance near $0.094 on the 4-hours chart of the DOGE/USD pair (data source from Kraken).
- The pair could start a fresh increase if there is a clear move above $0.0940.
Dogecoin Price Trims Gains
After Twitter’s logo change, Dogecoin’s price saw a strong upward move from the $0.0750 support. DOGE outperformed Bitcoin and Ethereum. It rallied over 25% and cleared many hurdles near $0.0850.
The bulls were able to pump the price above the $0.090 resistance. Finally, the price spiked above $0.10 and traded to a new monthly high at $0.1051. Recently, there was a downside correction below the $0.1000 level.
DOGE’s price declined below the $0.095 level. The price tested the 50% Fib retracement level of the recent rally from the $0.0765 swing low to the $0.1051 high. It is now consolidating gains well above the $0.085 zone and the 100 simple moving average (4 hours).
On the upside, the price is facing resistance near the $0.0940 level. There is also a key bearish trend line forming with resistance near $0.094 on the 4-hours chart of the DOGE/USD pair.
Source: DOGEUSD on TradingView.com
The first major resistance is near the $0.095 level. A clear move above the $0.095 resistance might send the price toward the $0.100 resistance. Any more gains might send the price toward the $0.105 level. A clear move above the $0.105 resistance could open the gates for an increase toward the $0.12 level.
Dips Supported in DOGE?
If DOGE’s price fails to gain pace above the $0.095 level, it could continue to move down. Initial support on the downside is near the $0.0905 level.
The next major support is near the $0.085 level or the 76.4% Fib retracement level of the recent rally from the $0.0765 swing low to the $0.1051 high. If there is a downside break below the $0.085 support, the price could decline further. In the stated case, the price might decline toward the $0.075 level.
Technical Indicators
4 Hours MACD – The MACD for DOGE/USD is now losing momentum in the bullish zone.
4 Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.
Major Support Levels – $0.090, $0.085, and $0.075.
Major Resistance Levels – $0.0940, $0.0950, and $0.100.
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