Dogecoin rallied towards the $0.108 level against the US Dollar. DOGE is correcting gains and approaching a major support at $0.090.
- DOGE started a downside correction from the $0.1080 resistance against the US dollar.
- The price is trading well above the $0.0850 zone and the 100 simple moving average (4-hours).
- There is a key bullish trend line forming with support near $0.090 on the 4-hours chart of the DOGE/USD pair (data source from Kraken).
- The pair must stay above the $0.088 support zone to start a fresh rally.
Dogecoin Price Aims Fresh Increase
In the past few days, dogecoin saw a major increase above the $0.0850 resistance zone. DOGE climbed above the $0.0920 and $0.0950 resistance levels, outpacing bitcoin and ethereum.
The price even jumped above the $0.100 resistance and settled above the 100 simple moving average (4-hours). However, the bears took a stand near the $0.1080 resistance zone. A high was formed near $0.1077 and the price started a downside correction.
Doge price corrected lower below the $0.100 support. There was a move below the 23.6% Fib retracement level of the upward move from the $0.0713 swing low to $0.1077 high.
It is now trading well above the $0.0850 zone and the 100 simple moving average (4-hours). There is also a key bullish trend line forming with support near $0.090 on the 4-hours chart of the DOGE/USD pair. On the upside, the price is facing resistance near the $0.0980 level.
Source: DOGEUSD on TradingView.com
The first major resistance is near the $0.1000 level. Any more gains above the $0.1000 zone could encourage the bulls to aim a retest of $0.1080. If they push the price above $0.1080, there could be a rally towards the $0.120 level.
More Losses in DOGE?
If DOGE price fails to gain pace above the $0.10 level, it could continue to move down. An initial support on the downside is near the $0.0920 level.
The next major support is near the $0.090 level and the trend line. If there is a downside break below the $0.0960 support, the price could decline further. The main support is near the $0.0850 level. Any more losses could open the doors for a move towards the $0.0780 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 – $0.0900, $0.0880 and $0.0850.
Major Resistance Levels – $0.0980, $0.1000 and $0.1080.
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