Dogecoin (DOGE) has attracted market attention thanks to its tremendous price increase, rising over 20 percent against the US dollar and securely trading above the support zone of $0.1650. DOGE has outperformed Bitcoin and Ethereum in recent trading sessions as it surpassed the key resistance level of $0.1500, closing at a peak of $0.1796.
However, trading and investing are paying unusual attention to this move, with key resistance levels around $0.1780 and $0.1800 signaling the next direction for DOGE. A strong upward trend line forming on the hourly DOGE/USD chart (Kraken data) has propelled prices back up after breaking resistance at $0.1450 and $0.1500, as buying momentum increases, allowing for a weak upward move from a stagnant bearish market.
DogeCoin finds strong support around the trend line of $0.1715.
The current trend line shows that prices are well supported at around $0.1715, sitting above the 23.6% Fibonacci retracement level, based on the recent low of $0.1275 compared to the current high. Analysts believe that DOGE will continue to grow if it trades above the 100-hour simple moving average and remains above key resistance areas.
At the time of reporting, DOGE is holding onto its gains and is in the process of consolidating, with the next high above $0.1720, indicating that the upward momentum is still in play. However, for this momentum to translate into new gains, DOGE must achieve a breakthrough above the current resistance levels. The first of those levels is targeted around $0.1765, with the next major resistance seen at $0.1780.
A decisive close above $0.1780 would bring some much-needed confidence to the market and could even pave the way for a bullish run towards $0.1800 and beyond. Bulls dreaming of $0.1850 are a real possibility as we head into this weekend, while a breakout above $0.1800 could lead to further bullish gains. Additionally, if the bullish trend continues, Dogecoin could rise to the psychological level of $0.2000.
Such a surge would be a significant milestone for the cryptocurrency, enhancing its position among the most volatile and promising digital assets in the market. DOGE's performance above $0.1650 has consistently maintained sky-high optimism as it has proven to be a crucial support area.
Dogecoin faces potential pressure below the key resistance level of $0.1780.
However, Dogecoin's upward trajectory is not without risks. DOGE could face downward pressure if it fails to break the resistance level of $0.1780. An initial support level is found at $0.1715, previously established by the upward trend line. IF this support level is broken, the next major support will be around $0.1675. If things worsen, Dogecoin could retest its main support at $0.1630, a level that has so far been a solid foundation for this asset.
The luck of a stronger correction could push it below $0.1630, where selling pressure would further increase, potentially dropping to $0.1500 or even $0.1420. This would be a shift from the recent gains and could signal a change in market sentiment towards DOGE. However, Dogecoin is unlikely to experience a correction due to the upward trend and strong support on technical indicators acting as the first barrier to further gains.
Both the hourly MACD for DOGE/USD has started to show bullish momentum and the hourly RSI has moved above 50, indicating an increase in buying demand. The next direction for DOGE is expected to be determined at levels of $0.1780 and $0.1800 or key support levels at $0.1715 and $0.1675.
Conclusion
The rise of Dogecoin has reached a significant signal for new highs as traders monitor key resistance levels at $0.1780 and $0.1800. Supply may break through and could achieve subsequent gains, or consolidation or retracement may test support levels. While optimism is high, strong caution remains as the cryptocurrency market is still volatile.