Dogecoin Soars 25%, Why Is DOGE's Uptrend Not Over Yet?

Dogecoin price has surged more than 25% against the US Dollar. DOGE managed to break the $0.120 resistance and is expected to continue rising towards the $0.132 resistance. In the last few sessions, Dogecoin price started a strong rise from the $0.080 support zone. DOGE managed to clear multiple hurdles near $0.0850 to enter the positive zone.

There was a break above the main contraction triangle with resistance at $0.0845 on the 4-hour chart of the DOGE/USD pair. It even broke the $0.100 resistance to move further into the positive zone like Bitcoin and Ethereum.

DOGE is up more than 25% and trading above $0.120. A fresh multi-week high was formed near $0.1282 and the price is now correcting upwards. The price is well above the 23.6% Fib retracement level of the recent surge from the swing low of $0.0845 to the swing high of $0.1282.

DOGE is also trading above the $0.1220 level and the 100 simple moving average (4-hours). On the upside, the price faces resistance near $0.1280 level. The next major resistance is near the $0.1320 level. A close above the $0.1320 resistance could push the price towards the $0.1450 resistance. The next major resistance is near $0.150. Further gains could push the price towards the $0.1620 level.

Downward Correction on DOGE?

If DOGE price fails to gain momentum above the $0.1280 level, it may initiate a downside correction.

Initial support on the downside is near the $0.120 level. The next major support is near the $0.1065 level or the 50% Fib retracement level of the recent surge from the $0.0845 swing low to the $0.1282 swing high. In case of a downside break below the $0.1065 support, the price may decline further. In that case, the price may fall towards the $0.100 level.