Dogecoin (DOGE) is currently seeing a recovery from its support level at $0.1220 against the US Dollar. However, in order to start another increase towards $0.200, DOGE needs to overcome the resistance at $0.1650.
DOGE experienced a significant decline and tested the support level at $0.1220. Currently, the price is trading below the $0.1650 level as well as the 100 simple moving average (4 hours). However, there was a positive development as a key bearish trend line with resistance at $0.1310 was broken on the DOGE/USD 4-hour chart.
After finding support near the $0.1220 zone, Dogecoin has started to recover. It cleared the resistance levels at $0.1320 and $0.1350, and even surpassed the 23.6% Fibonacci retracement level of the downward move from the $0.1927 swing high to the $0.1228 low. Additionally, a key bearish trend line was also broken.
Nevertheless, DOGE is still below the $0.160 level and the 100 simple moving average (4 hours). Its next obstacle lies near the $0.1580 level, which represents the 50% Fibonacci retracement level. The major resistance level to overcome is at $0.1650, and a successful close above it could push the price towards $0.1850. If the bullish momentum continues, DOGE could even reach $0.200 and potentially $0.220.
On the other hand, if DOGE fails to gain traction above $0.160, it may experience another decline. The initial support on the downside is at $0.1450, followed by the major support level at $0.130. A break below this level could lead to further declines, potentially reaching the $0.1150 level.
The MACD indicator for DOGE/USD on the 4-hour chart is showing bullish momentum, while the RSI is currently above 50.
Please note that this article is strictly for educational purposes and should not be considered as financial advice. Conduct your own research before making any investment decisions, and be aware that investing comes with risks.