After experiencing a sharp decline, Dogecoin (DOGE) has found support near the $0.0685 zone. Following the footsteps of Bitcoin and Ethereum, DOGE has recently initiated a decent increase, breaking through crucial resistance levels. In this article, we will delve into the current price action of DOGE and explore the potential scenarios for its future movements.
Dogecoin faced a significant breakthrough when it surpassed the $0.0720 resistance zone. Bulls took charge, propelling the price above the 50% Fibonacci retracement level of the downward move from the $0.0755 swing high to the $0.0684 low. Notably, there was a notable break above a significant bearish trend line, which had resistance around $0.0722, as observed on the 4-hours chart of the DOGE/USD pair.
However, the upward momentum met resistance near the $0.074 level, where the bears became active. The 76.4% Fibonacci retracement level of the downward move from the $0.0755 swing high to the $0.0684 low acted as a strong hurdle. Currently, Dogecoin is trading below the $0.0725 zone and the 100 simple moving average (4 hours), but it has maintained a critical support zone at $0.0718.
Looking ahead, the immediate hurdle for DOGE is near the $0.0722 level, followed by a more significant resistance at $0.0740. If the price manages to close above the $0.074 resistance, it could pave the way for further gains toward the $0.0775 resistance. Subsequently, the price might even aim for the $0.0800 level, and beyond that, $0.0825.
On the downside, if DOGE fails to gather momentum above the $0.074 level, it may continue its downward movement. Initial support lies around the $0.0718 level, critical for the near-term trend. The further downside could see the price testing the $0.0700 level, and if that level is breached, a decline toward the $0.0685 zone becomes plausible.
To assess the overall market sentiment, we can look at some technical indicators. The 4-hour MACD for DOGE/USD is currently gaining momentum in the bearish zone, suggesting the presence of downward pressure. Additionally, the 4-hour RSI (Relative Strength Index) is below the 50 levels, indicating a bearish sentiment among traders.
Dogecoin has shown resilience by finding support and embarking on an upward trajectory. While facing resistance near key levels, DOGE has the potential to break through and aim for higher price targets. However, failure to gain momentum above resistance levels may result in a continuation of the downward trend. Traders and investors should closely monitor the $0.074 and $0.0718 levels as crucial indicators for DOGE’s near-term direction.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.