Dogecoin is experiencing a positive shift in momentum as it maintains its position above the critical support level of $0.4250 against the US Dollar. With this upward trend, DOGE is poised to potentially break through the resistance at $0.4650.
The cryptocurrency began its latest rally after surpassing the $0.420 level, mirroring movements seen in major coins like Bitcoin and Ethereum . Following this increase, Dogecoin managed to breach a significant bearish trend line that previously capped its growth at $0.4150. Currently, the price is trading above both the established support level and the 100-hourly simple moving average, highlighting a strengthening bullish sentiment. The immediate resistance appears to be around $0.4450, which aligns with the 76.4% Fibonacci retracement level from a prior downward movement.
Looking ahead, the next significant hurdles for Dogecoin’s bullish trajectory are situated at $0.450 and $0.4650. If the price can maintain its momentum and close above $0.4650, it could potentially reach up to $0.4750, with further gains possibly driving it toward the psychological $0.5000 barrier. Long-term bullish sentiment may extend even further to $0.5200 if the rally continues.
Conversely, there are risks of a downside correction if the price fails to rise past the $0.4450 level. In such a scenario, initial support is anticipated at $0.4250, followed closely by a more critical support level around $0.4120. Should the price decline below $0.400, further losses could ensue, potentially testing levels around $0.3880 or even $0.3750 in the short term.
Technical indicators are currently reflecting a bullish outlook for Dogecoin, with the MACD showing increased momentum in the positive territory and the RSI positioned above the neutral 50 level.
