Dogecoin (DOGE) is consolidating its gains above the $0.320 resistance against the US Dollar and is expected to move above $0.400.
Currently, DOGE price has entered a consolidation phase just like Bitcoin and has remained above the $0.320 resistance level. Its price is trading around the $0.3750 level and the 100 hourly simple moving average.
From the hourly chart of the DOGE/USD pair, a key bearish trend line has been broken with the corresponding resistance at $0.3670. If the price can break through the two resistance levels of $0.400 and $0.4150, the subsequent rise is likely to continue.
Detailed analysis of Dogecoin price trend
Upward trend related situations
Dogecoin is expected to usher in a new round of surge in price. Currently, its price has begun to consolidate above the $0.320 area, which is similar to Bitcoin and Ethereum. Dogecoin has built a bottom above $0.350 and is on an upward trend.
It broke the $0.3550 and $0.3620 resistance levels in succession and the price climbed above the 23.6% Fibonacci retracement level of the downward move from the $0.4342 high to $0.3400 low. There was also a break above a key bearish trend line with resistance at $0.3670 on the hourly chart of the DOGE/USD pair. Currently, Dogecoin price is trading near the $0.3750 level and the 100 hourly simple moving average. On the upside, the nearest resistance is near $0.3720.
Moving up, the next major resistance is near the $0.3880 level, which is the 50% Fibonacci retracement level of the downward move from the $0.4342 high to $0.3400 low. A close above this resistance level could lead the price towards the $0.400 resistance level and above, it could move towards the $0.4200 level. The next major stop for the bulls could be set at $0.500.
Downside risk related situations
As for whether the decline of Dogecoin is limited, if its price fails to break through the $0.3720 level, it is possible to start a downward correction. The initial support level of the downward trend is around $0.3650, the next major support level is around $0.3500, and the most important support level is $0.320. Once the support level of $0.320 is broken, the price may fall further in the short term, and may even fall to $0.300 or $0.2950.
Technical indicators
Hourly MACD: The MACD for DOGE/USD is currently gathering momentum in the bullish zone, which is a relatively positive sign for the rise in the price of Dogecoin.
Hourly RSI (Relative Strength Index): The RSI for DOGE/USD is now above the 50 level, which means that the current relative strength of Dogecoin is in a relatively strong range. It also indirectly reflects that its short-term upward momentum is relatively stronger.
