Dogecoin has shown resilience, managing to consolidate above the $0.320 resistance level against the US Dollar. The cryptocurrency is currently trading at approximately $0.3750, with the 100-hourly simple moving average indicating a potential for further upward movement.
In recent trading sessions, Dogecoin was able to exhibit a similar pattern to major cryptocurrencies like Bitcoin and Ethereum . After establishing a firm foundation above the $0.350 level, DOGE successfully breached key resistance levels at $0.3550 and $0.3620. This upward momentum included surpassing a significant bearish trend line around the $0.3670 level. The recent price action suggests that if Dogecoin can clear the critical resistance points at $0.400 and $0.4150, it could set the stage for more substantial gains.
The immediate resistance for Dogecoin is hovering near $0.3720. Should the price continue to climb, the next major hurdle will occur around $0.3880, which aligns with the 50% Fibonacci retracement level from a downward movement observed from its swing high of $0.4342 to a low of $0.3400. A successful close above this level could propel Dogecoin towards the significant $0.400 resistance. Additionally, sustained bullish momentum might see prices aim for the $0.4200 level, with a longer-term target set at $0.500.
Conversely, should Dogecoin’s price fail to surpass the $0.3720 level, a downward correction may ensue. The initial support is expected around $0.3650, followed by a more substantial support level at $0.3500. The critical support lies at $0.320; any decline below this point could open the floodgates for further drops, potentially testing levels around $0.300 to $0.2950 in the near term.
Technical indicators reflect a positive outlook as the hourly MACD gains bullish momentum and the Relative Strength Index stays above the neutral 50 line, suggesting that bullish sentiment remains intact for Dogecoin. Major support and resistance levels have been established, marking crucial points for traders to watch in the coming sessions.
