Dogecoin (DOGE) has shown signs of recovery after a sharp drop toward the $0.2620 support against the US Dollar. Currently, DOGE is regaining momentum and could see further upside if it surpasses critical resistance levels.
Key Highlights
DOGE initiated a recovery wave above the $0.30 level.
The price is trading above $0.320 and holding steady above the 100-hourly simple moving average.
A break occurred above a bearish trend line with resistance near $0.3120 on the DOGE/USD hourly chart.
DOGE needs to clear the $0.3350 and $0.350 resistance levels to solidify its recovery.
Dogecoin Price Analysis
DOGE recently declined from highs above $0.3550, following a bearish trend like Bitcoin and Ethereum. The price slid below the $0.3350 and $0.320 support levels, reaching as low as $0.2613.
The recovery began with a climb above $0.300, testing the 23.6% Fibonacci retracement level of the downward move from the $0.4095 swing high to the $0.2613 low.
The breakout above $0.3120 resistance on the hourly chart indicates renewed bullish momentum, with DOGE now trading above $0.320 and the 100-hour simple moving average.
Immediate Resistance Levels
$0.3350: Immediate resistance on the upside.
$0.3520: First significant resistance, aligned with the 61.8% Fibonacci retracement level.
$0.3750: A close above this level could propel DOGE toward $0.3880 and possibly $0.40.
Potential Downside Risks
If DOGE struggles to break above $0.3350, it may face another dip.
$0.3000: Immediate downside support.
$0.2850: Next critical support level.
$0.2620: A breach below this could trigger further losses, potentially driving the price toward $0.2500 or $0.2320.
Technical Indicators
Hourly MACD: Bullish momentum is gaining.
Hourly RSI: RSI is above 50, supporting upward movement.
Major Support Levels: $0.3000 and $0.2850.
Major Resistance Levels: $0.3350 and $0.3500.
Conclusion
Dogecoin is showing signs of strength, but it must clear key resistance levels to maintain its recovery. Watch for a potential breakout above $0.3350, as it could set the stage for a move toward $0.40 and higher. Conversely, failure to hold above $0.300 could trigger renewed bearish pressure.
Stay tuned for more updates and trade cautiously!
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