Dogecoin (DOGE) is currently gaining momentum as it surpasses the $0.085 zone against the US Dollar. With positive signs and a breakout from a key contracting triangle, DOGE could potentially initiate a fresh rally above significant resistance levels.
In recent sessions, Dogecoin has experienced a decent increase starting from the $0.080 support zone. It successfully cleared several obstacles around $0.0820 to enter a positive zone. Notably, there was a break above a crucial contracting triangle with resistance at $0.0820 on the 4-hour chart of the DOGE/USD pair.
Furthermore, DOGE managed to break the $0.0850 resistance level. However, compared to Bitcoin and Ethereum, DOGE’s upsides were relatively limited. The price reached a high near $0.0883 and is presently consolidating its gains.
Although DOGE is currently trading above the 23.6% Fib retracement level of the recent increase from the $0.0795 swing low to the $0.0883 high, it is facing resistance near the $0.0880 level. The next significant resistance is expected to be near the $0.0920 mark. If the price manages to close above this resistance, it may then move towards the $0.095 resistance level.
Moreover, if DOGE continues to gain momentum, it could potentially reach the next major resistance level around $0.100. A significant surge in value might even push the price towards the $0.120 level.
In the event that DOGE fails to maintain its upward momentum and struggles to break above the $0.0880 level, it could potentially trigger a downside correction. The initial support level on the downside is close to $0.0860. Should the price decline further, the next major support will be near $0.0840 or the 50% Fib retracement level of the recent increase.
A break below the $0.0840 support level may result in further downward movement towards the $0.0820 level.
Analyzing the technical indicators, the 4-hour MACD for DOGE/USD suggests that momentum is starting to wane in the bullish zone. On the other hand, the 4-hour RSI (Relative Strength Index) indicates a value above the 50 level, potentially signaling a positive trend.
Dogecoin is showing positive signs and is currently trading in a favorable zone above $0.085 against the US Dollar. With a significant breakout from a key contracting triangle, there is a possibility of a fresh rally above resistance levels. However, it is important for investors to conduct their own research and exercise caution when making investment decisions as the market carries inherent risks.
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