Dogecoin enthusiasts are getting excited as the price of DOGE surges above the $0.085 mark against the US Dollar. Many are predicting that a fresh rally could be on the horizon, with the potential for DOGE to reach resistance levels at $0.088 and $0.095.
In recent sessions, Dogecoin has seen a significant increase in price, starting from the $0.080 support zone. The cryptocurrency broke through multiple obstacles, including a key contracting triangle with resistance at $0.0820 on the 4-hour chart. It even surpassed the $0.0850 resistance level, although its gains were not as substantial as Bitcoin and Ethereum.
However, DOGE is currently consolidating its gains after reaching a high of $0.0883. The cryptocurrency is now trading above the 23.6% Fibonacci retracement level and the 100 simple moving average (4 hours). The $0.0880 level poses as the first major resistance, followed by $0.0920. If the price can surpass these levels, it may continue its upward momentum towards the $0.095 resistance and potentially even reach $0.120.
Nevertheless, if DOGE fails to gain further momentum above $0.0880, a downside correction could occur. Initial support is expected near the $0.0860 level, followed by the $0.0840 level, which represents the 50% Fibonacci retracement level. A break below this support could lead to a further decline towards $0.0820.
Looking at the technical indicators, the MACD is currently showing a loss of momentum in the bullish zone, while the RSI is above the 50 level.
It is important to note that this article is for educational purposes only and does not constitute financial advice. Investors should conduct their own research and exercise caution when making investment decisions.