After finding support near $0.2110, Dogecoin (DOGE) has started a new upward trend, moving in sync with Bitcoin and Ethereum. Bulls pushed the price above the initial resistance level of $0.220, further rallying above $0.2320.
However, near $0.2380, bears quickly intervened, limiting the upside potential. The price peaked around $0.2378 and then fell, breaking below the 50% Fibonacci retracement level formed from the rise from $0.2109 to $0.2370.
Currently, the DOGE price is slightly below $0.2250 and the 100-hour simple moving average. However, it is worth noting that a bullish trend line is providing support near $0.220 on the DOGE/USD hourly chart.
DOGE/USD hourly chart trend
On the upside, DOGE is facing initial resistance at $0.2250. If bullish momentum continues to strengthen, the next key resistance level will focus around $0.2320. If this level is successfully broken, the market may further test the $0.2380 level.
Once it closes above this key resistance level, it will open up an upward channel for prices, with potential targets including $0.250, and possibly even hitting higher resistances at $0.2720 and $0.2850.
Does DOGE face further correction?
If the price fails to break through the $0.2320 resistance area, it may come under pressure again in the short term. Initial support is near $0.220; if it breaks below this, the cryptocurrency may test the $0.2170 support — which is also close to the 76.4% Fibonacci retracement level of the mentioned upward wave.
Stronger support is at $0.2120. If this level is broken, DOGE may temporarily fall back to $0.20, or even further down to the $0.1880 area.
Technical indicators observation
Hourly MACD: The MACD for DOGE/USD is currently in the bearish zone and shows enhanced bearish momentum.
Hourly RSI: The relative strength index is below 50, indicating that current market momentum is bearish.
Key support levels: $0.220, $0.2120
Key resistance levels: $0.2320, $0.2380
