Dogecoin (DOGE) Positive Indicators Emerge, But Recovery Still Fragile

[Ben Graham]

Dogecoin started a recovery wave above the $0.120 zone against the US Dollar. DOGE is now facing hurdles near $0.1280 and might struggle to continue higher.

• DOGE price started a recovery wave from $0.1150 and climbed above $0.120.
• The price is trading below the $0.130 level and the 100-hourly simple moving average.
• There was a break above a key bearish trend line with resistance at $0.1240 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could continue to move up if it stays above $0.120.

Dogecoin Price Faces Resistance

Dogecoin price started a recovery wave from the $0.1150 zone, like Bitcoin and Ethereum. DOGE climbed above the $0.1180 and $0.120 resistance levels.

There was a decent upward move above the 23.6% Fib retracement level of the downward move from the $0.1512 swing high to the $0.1154 low. Besides, there was a break above a key bearish trend line with resistance at $0.1240 on the hourly chart of the DOGE/USD pair.

Dogecoin price is now trading below the $0.130 level and the 100-hourly simple moving average. If there is a recovery wave, immediate resistance on the upside is near the $0.1260 level. The first major resistance for the bulls could be near the $0.1285 level.

The next major resistance is near the $0.1330 level and the 50% Fib retracement level of the downward move from the $0.1512 swing high to the $0.1154 low. A close above the $0.1330 resistance might send the price toward the $0.1420 resistance. Any more gains might send the price toward the $0.150 level. The next major stop for the bulls might be $0.1550.

Another Decline In DOGE?

If DOGE’s price fails to climb above the $0.1280 level, it could continue to move down. Initial support on the downside is near the $0.1230 level. The next major support is near the $0.120 level.

The main support sits at $0.1150. If there is a downside break below the $0.1150 support, the price could decline further. In the stated case, the price might slide toward the $0.1080 level or even $0.1050 in the near term.

Technical Indicators

Hourly MACD – The MACD for DOGE/USD is now losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.

Major Support Levels – $0.1200 and $0.1150.

Major Resistance Levels – $0.1280 and $0.1330.