Dogecoin is attempting a recovery wave above the $0.0585 resistance against the US Dollar. DOGE could rally if it clears the $0.065 resistance zone.
- DOGE is currently struggling to clear the $0.0628 resistance against the US dollar.
- The price is trading below the $0.065 zone and the 100 simple moving average (4 hours).
- There is a major bearish trend line forming with resistance near $0.0635 on the 4-hours chart of the DOGE/USD pair (data source from Kraken).
- The pair could start a fresh rally if it clears the $0.065 resistance zone.
Dogecoin Price Eyes Recovery
After a sharp decline, Dogecoin’s price found support near the $0.0554 zone. DOGE formed a base and recently started a decent recovery above $0.058, similar to Bitcoin and Ethereum.
There was a clear move above the $0.0585 resistance zone. The bulls pushed the price above the 23.6% Fib retracement level of the downward move from the $0.0714 swing high to the $0.0554 low. The price is now consolidating above $0.060.
DOGE is still trading below the $0.065 zone and the 100 simple moving average (4 hours). There is also a major bearish trend line forming with resistance near $0.0635 on the 4-hours chart of the DOGE/USD pair.
On the upside, the price is facing resistance near the $0.0628 level. The first major resistance is near the $0.0635 level and the trend line. It is close to the 50% Fib retracement level of the downward move from the $0.0714 swing high to the $0.0554 low.
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A close above the $0.0635 resistance might send the price toward the $0.065 resistance. The next major resistance is near $0.0675. Any more gains might send the price toward the $0.070 level.
More Losses in DOGE?
If DOGE’s price fails to gain pace above the $0.0635 level, it could continue to move down. Initial support on the downside is near the $0.0595 level.
The next major support is near the $0.0580 level. If there is a downside break below the $0.0585 support, the price could decline further. In the stated case, the price might decline toward the $0.0554 level.
Technical Indicators
4 Hours MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone.
4 Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.
Major Support Levels – $0.0595, $0.0580, and $0.0554.
Major Resistance Levels – $0.0628, $0.0635, and $0.0650.