Dogecoin (DOGE) Mammoth Rally Takes Break, Why Dips Turned Attractive
Dogecoin surged over 100% and broke $0.12 against the US Dollar. DOGE is correcting gains, but dips might be limited below the $0.10 level.
- DOGE extended its rally and it cleared the $0.1000 and $0.1200 resistance levels against the US dollar.
- The price is trading well above the $0.1000 zone and the 100-day simple moving average.
- There was a break above a major bearish trend line with resistance near $0.070 on the daily chart of the DOGE/USD pair (data source from Kraken).
- The pair is correcting gains, but the bulls might remain active near the $0.10 zone.
Dogecoin Rallies To New Multi-Week High
This past week, dogecoin saw a strong bullish wave from the $0.055 support zone. DOGE rallied significantly above the $0.070 resistance, outpacing bitcoin and ethereum.
There was a break above a major bearish trend line with resistance near $0.070 on the daily chart of the DOGE/USD pair. The pair rallied over 100% and broke many hurdles near the $0.10 level. It even climbed above $0.12 and traded as high as $0.1513.
Recently, it started a downside correction below the $0.135 level. The price traded below the 23.6% Fib retracement level of the recent surge from the $0.0551 swing low to $0.1513 high.
However, the price is trading well above the $0.1000 zone and the 100-day simple moving average. An initial support is near the $0.1100 level. The first key support is near the $0.1000 level. It is close to the 50% Fib retracement level of the recent surge from the $0.0551 swing low to $0.1513 high.
If there is a downside break below the $0.1000 support, the price could correct further. The main support is forming near the $0.0920 and $0.0900 levels. Any more losses could open the doors for a move towards the $0.0800 level.
More Gains in DOGE?
If DOGE price remains stable above the $0.1000 support, there are chances of more gains. An initial resistance on the upside is near the $0.1250 level.
The first major resistance is near the $0.1320 level. Any more gains above the $0.1320 zone could encourage the bulls to aim a test the important $0.15 level.
4-Hours MACD – The MACD for DOGE/USD is now losing momentum in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now in the overbought zone.
Major Support Levels – $0.1100, $0.1100 and $0.0920.
Major Resistance Levels – $0.1250, $0.1320 and $0.1500.