Dogecoin (DOGE) shows encouraging upward movement above the $0.0620 resistance level against the US dollar. Despite trading below the $0.064 zone and the 100 simple moving average (4 hours), DOGE has recently broken a crucial bearish trend line, indicating the potential for a fresh rally.
Price Breakout and Bullish Momentum:
A notable breakthrough occurred in the 4-hour chart of DOGE/USD from Kraken as DOGE surpassed a significant bearish trend line near the $0.0620 resistance. This development suggests a positive shift in market sentiment. While the price currently trades below the $0.064 zone and the 100 simple moving average (4 hours), a successful clearance of the $0.064 resistance zone could spark a new wave of buying pressure.
Recovery after Forming Base:
After establishing a base above the $0.0550 level, Dogecoin witnessed a steady increase in its price. Over the past two sessions, DOGE demonstrated bullish moves following the upward movement of Bitcoin and Ethereum, surpassing the $0.0580 and $0.060 resistance levels. The price climbed above the 50% Fibonacci retracement level, indicating a recovery from the decline between the $0.0715 swing high and the $0.0554 low.
Resistance and Potential Upside Targets :
While the price faces resistance near the 100 simple moving average (4 hours), the immediate hurdle lies at the $0.0655 level and the 61.8% Fibonacci retracement level of the decline above. A successful close above the $0.0655 resistance may propel the price toward the $0.0685 resistance, followed by a major resistance near $0.070. Further gains could drive the price to the $0.072 level, indicating an optimistic outlook for DOGE.
Support Levels and Potential Downside:
A fresh decline might ensue if the price fails to gather momentum above the $0.0640 level. Initial support on the downside can be expected near the $0.0625 level, followed by a major support zone at $0.060. A breach below the $0.0600 support may result in further downward movement toward the $0.0550 level. Traders should closely monitor these key levels for potential trading opportunities.
Conclusion:
Dogecoin’s recent breakout above the bearish trend line and positive price action suggests the potential for a fresh rally. However, cautious monitoring of key support and resistance levels is advised.
