Dogecoin is up over 100% and broke $0.12 against the US Dollar. DOGE is correcting gains, but declines could be limited below the $0.10 level.
- DOGE extended its rally and cleared the $0.1000 and $0.1200 resistance levels against the US Dollar.
- The price is trading well above the $0.1000 area 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 are likely to remain active near the $0.10 area.
Dogecoin reaches new multi-week high
Last week, Dogecoin witnessed a strong bullish wave from the $0.055 support area. DOGE rose significantly above the $0.070 resistance level, leaving Bitcoin and Ethereum behind.
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 gained over 100% and broke several hurdles near the $0.10 level. It also climbed above $0.12 and traded higher at $0.1513.
Recently, it started a downside correction below the $0.135 level. The price is trading below the 23.6% Fib retracement level of the recent rally from $0.0551 low to $0.1513 high.
However, the price is trading above the $0.1000 area and the 100-day simple moving average. An initial support is near the $0.1100 level. The first major support is near the $0.1000 level. It is close to the 50% Fibonacci retracement level of the recent rise from the $0.0551 low to $0.1513 high.
If there is a downside break below the $0.1000 support level, there could be a further correction in the price. Major support is forming near the $0.0920 and $0.0900 levels. Any further losses could open the doors for a move towards the $0.0800 level.
More profit in DOGE?
If DOGE price holds steady 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 further gains above the $0.1320 area could encourage the bulls to test the crucial $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 overbought territory.
Major Support Levels – $0.1100, $0.1100 and $0.0920.
Key Resistance Levels – $0.1250, $0.1320 and $0.1500.