Dogecoin has made a remarkable comeback, starting a fresh upward trend from the $0.0985 support level against the US Dollar. As the cryptocurrency market continues to show signs of recovery, DOGE has the potential to gain even more momentum if it manages to break above the key resistance level at $0.1085.
Currently, DOGE price is trading above the $0.100 mark and the 100-hourly simple moving average, indicating a bullish sentiment in the market. A significant development was the breakout above a crucial bearish trend line with resistance at $0.1030 on the hourly chart of the DOGE/USD pair sourced from Kraken. This breakout paved the way for further upside potential as the price surpassed the 50% Fib retracement level of the recent downward move.
The recent price action suggests that Dogecoin is now eyeing an upside break above the $0.1085 resistance level. Immediate resistance is seen near the $0.1050 level, which is closely aligned with the 61.8% Fib retracement level of the recent swing. If the price manages to clear the $0.1060 hurdle, it could set the stage for a potential rally towards the $0.1085 resistance and beyond, with the possibility of reaching levels around $0.1150 and $0.1200.
On the flip side, if the price fails to break above the $0.1060 level, we could see a possible downside correction. Initial support is expected near the $0.1030 level and the aforementioned trend line, followed by a major support level around $0.1020. The ultimate support zone remains at $0.0985, and a breach below this level could result in further downside movement towards $0.0920 or even $0.0885 in the short term.
Technical Indicators
Looking at the technical indicators, the MACD for DOGE/USD is showing signs of gaining momentum in the bullish zone, indicating a positive outlook for the cryptocurrency. The hourly RSI (Relative Strength Index) is currently above the 50 level, further supporting the bullish scenario for Dogecoin.
In conclusion, Dogecoin’s recent price action suggests a potential for further upside if it can surpass the key resistance levels. With the overall market sentiment turning positive, DOGE could attract more buyers and continue its upward trajectory. However, traders should remain cautious of potential retracements and closely monitor key support levels to assess the overall trend. Stay tuned to DeFi Daily News for more trending articles and updates on the cryptocurrency market.
