Dogecoin (DOGE) is currently in a recovery phase after finding support around $0.0595 against the US Dollar. There is potential for DOGE to continue rising if it manages to surpass the resistance at $0.0640.
DOGE has initiated a decent upward movement above the $0.0615 resistance against the US dollar.
The price is trading above the $0.062 level and the 100 simple moving average over a 4-hour period.
A notable ascending channel is forming, presenting resistance near $0.0640 on the 4-hour chart of the DOGE/USD pair (data sourced from Kraken).
Nevertheless, the price may face challenges in overcoming resistance levels at $0.0638 and $0.0640.
After experiencing a significant decline, Dogecoin found support around $0.0595. It reached a low of $0.0591 and has since begun to recover. The price made a notable move above $0.0600 and stabilized above $0.0612.
DOGE Finds Support at $0.0595 and Seeks to Break Key Resistance at $0.0640
Recent gains in Bitcoin, with it surging above $27,000, have also supported the recovery of altcoins, including Dogecoin. DOGE has exhibited some positive signals and managed to surpass the $0.062 resistance level. This move took it above the 23.6% Fibonacci retracement level of the recent downward movement from the $0.0685 swing high to the $0.0591 low.
DOGE is currently trading above the $0.062 level and the 100 simple moving average over a 4-hour period. On the upside, it is encountering resistance around the $0.0638 level. This level is close to the 50% Fibonacci retracement level of the recent decline from the $0.0685 swing high to the $0.0591 low.
A crucial resistance point lies at approximately $0.0640. Additionally, a significant ascending channel is forming on the 4-hour chart of the DOGE/USD pair.
For DOGE to experience further gains, it needs to surpass the resistance at $0.0620. This could potentially push the price towards the $0.0670 resistance. The next major resistance lies near $0.0685, with further gains potentially leading the price towards the $0.072 level.
Technical Analysis: DOGE/USD 4-Hour Chart Signals Potential Upside Breakout
On the other hand, if DOGE struggles to overcome the $0.0640 resistance, it might undergo a downside correction. Initial support is expected near the $0.0620 level, followed by the $0.0600 support level. If there is a break below $0.0600, the price could experience further declines. In this case, the price might drop towards the $0.0565 level.
In terms of technical indicators, the 4-hour MACD (Moving Average Convergence Divergence) for DOGE/USD is currently showing signs of losing bullish momentum. The 4-hour RSI (Relative Strength Index) for DOGE/USD is above the 50 level.
Key support levels for DOGE include $0.0620, $0.0600, and $0.0565. Key resistance levels to watch are $0.0638, $0.0640, and $0.0685.