- Dogecoin has recently surged above $0.120 and is currently consolidating its gains, with potential to extend its rally past $0.1265.
- However, failure to break this resistance could trigger a downside correction, with support levels at $0.1215 and $0.1195.
Dogecoin has recently shown a promising surge, climbing above the $0.120 resistance zone against the US Dollar. Currently, DOGE is consolidating its position and appears poised to extend its gains past the $0.1265 mark. The critical question on every investor’s mind is whether this rally has the momentum to sustain itself.
Dogecoin Price Eyes More Gains
Dogecoin’s upward trend began after it established a base above the $0.1050 level. This movement pushed DOGE past the $0.1150 resistance, aligning its trajectory with other major cryptocurrencies like Bitcoin and Ethereum. The price further ascended above the $0.120 level and the 100-hourly simple moving average, achieving a high of $0.1264.
Currently, Dogecoin is consolidating gains above the 23.6% Fibonacci retracement level, which measures the upward move from the $0.1167 swing low to the $0.1264 high. Trading above $0.1220 and the 100-hourly simple moving average, DOGE is supported by a key bullish trend line at $0.1195.
If Dogecoin manages to clear the $0.1265 resistance zone, the next target is the $0.1320 level. Successfully closing above this threshold could propel the price towards the $0.1450 resistance. Further gains might even see DOGE reaching the $0.150 and $0.1620 levels, marking significant milestones for the cryptocurrency.
Potential Downside Risks
Despite the bullish outlook, there are potential downside risks that could halt DOGE’s upward momentum. If the price fails to break past the $0.1265 level, it may trigger a downside correction. Initial support is expected at the $0.1240 level, with more substantial support around $0.1215, coinciding with the 50% Fibonacci retracement level of the recent upward move.
The primary support zone is at $0.1195. A breach below this level could lead to further declines, potentially driving the price down to the $0.1140 level. Investors should closely monitor these support levels to gauge the strength of the current rally.
Technical Indicators
- Hourly MACD: The MACD for DOGE/USD is gaining momentum in the bullish zone, indicating a potential continuation of the upward trend.
- Hourly RSI: The RSI for DOGE/USD is above the 50 level, supporting the bullish momentum.
- Major Support Levels: $0.1215 and $0.1195.
- Major Resistance Levels: $0.1265 and $0.1450.
While Dogecoin’s recent performance has been encouraging, sustaining this rally will depend on its ability to clear critical resistance levels and maintain strong support. Investors should remain vigilant and watch for any signs of a reversal to make informed decisions.
