Dogecoin has begun a new upward movement, surpassing the important resistance area of $0.180 against the US dollar. Currently, this famous meme coin is trading steadily above a strong support area and may be preparing for a breakout above the psychological level of $0.20.

Strong Surge from Support Area $0.1750

After hitting the short-term bottom around $0.1750 - a support area that played a crucial role in previous correction phases - DOGE has surged strongly, following Bitcoin and Ethereum in the overall market uptrend. The price has surpassed important resistance levels at $0.180 and $0.1880, indicating that buying pressure is returning noticeably.

DOGE then continued to surpass the resistance area of $0.1920, and even approached the $0.20 mark - creating a short-term peak at $0.1992 before entering an accumulation phase.

Stable Technical Support - Upward Trend Maintained

Currently, DOGE is trading above $0.1880 and the simple moving average of 100 hours (100-SMA), a positive sign indicating that the upward trend is still being maintained. At the same time, a short-term upward trend line is forming with support around $0.1910 on the hourly chart (data from Kraken).

The next important support level is the $0.1880 area, equivalent to the 23.6% Fibonacci level of the upward move from $0.1660 to $0.1992 - indicating that this price area is acting as a potential launch pad for subsequent increases.

Immediate Resistance - Breakout Opportunity

On the bullish side, the nearest resistance is at $0.1980. If DOGE can surpass this area, the psychological barrier of $0.2000 will be the next target that investors are aiming for. In a favorable scenario, if the price closes steadily above $0.2050, the market could witness a stronger rally, bringing DOGE towards new highs at $0.220 and $0.2320. In a maximum bullish scenario, DOGE could even test the $0.250 area in the medium term.

Short-Term Correction Scenario

However, if DOGE cannot surpass the $0.20 area in the upcoming sessions, a slight correction may occur. The first support area is at $0.1910 - coinciding with the current upward trend line. If the price breaks below this area, the next support will be $0.1820 (50% Fibonacci retracement of the most recent upward movement). The critical support level is $0.1780 - if this area is breached, DOGE may continue to decline further to $0.1750 or even $0.1720.

Technical Indicators

  • MACD (Hourly Chart): The MACD indicator is regaining momentum in the bullish zone, supporting the breakout scenario.

  • RSI (Relative Strength Index): The RSI is above 50, indicating that the upward trend remains dominant.

Conclusion

Dogecoin is exhibiting significant strength in the short term, with the upward momentum supported by positive technical factors and improved market sentiment. If it can overcome the resistance area of $0.1980 - $0.2000, DOGE could begin a new bullish cycle with the nearest target at $0.220. However, investors should be mindful of strategic support areas to timely adjust positions if a correction scenario occurs. $DOGE