Dogecoin (DOGE) has been drawing market interest thanks to a tremendous price boost, rising over 20 percent versus the US dollar and trading safely above the $0.1650 support zone. DOGE surged by more than Bitcoin and Ethereum over the past few trading sessions as it overtook key resistance at $0.1500, closing at a peak of $0.1796.
However, trading and investing eyes abnormally close to this movement, key resistance levels around $0.1780 and $0.1800 would signal a DOGE’s next upward path. A strong bull trend line formed on the hourly DOGE/USD chart (Kraken data) pushed the price rally to begin after a break above the $0.1450 and $0.1500 resistance levels, as buying momentum increased, allowing a feeble bull move from the stagnant bear market.
Dogecoin Finds Strong Support Around $0.1715 Trend Line
The current trend line, which has the price well supported at about $0.1715, sits above the 23.6% Fibonacci retracement level, based on the recent swing low of $0.1275 to the current high. Analysts believe that DOGE will grow further should it trade above the 100 hourly simple moving average if the price continues to trade above critical resistance zones.
At press time, DOGE is holding its gains and is in a consolidation, followed by a high above $0.1720, which signifies that bullish momentum is still on course. However, for this momentum to turn into new gains, DOGE has to achieve a breakout above its current resistance levels. The first of those levels are 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 back to the markets and could even facilitate a run towards the $0.1800s and beyond. Bulls dreaming about the $0.1850 are a thing as we enter this weekend, while a break above $0.1800 could lead to further gains. In addition to this, should the bullish trend stick around, Dogecoin might rise to the psychological barrier of $0.2000.
Advertisement Banner
Such a surge would be a major milestone for the cryptocurrency, adding to its standing among the more volatile and promising of all digital assets in the market. DOGE’s performance above the $0.1650 mark has consistently kept optimism sky-high since it proved to be a key support zone.
Dogecoin Faces Potential Pressure Below Key $0.1780 Resistance
Nonetheless, the upward trajectory of Dogecoin isn’t risk free. DOGE could come under pressure downwards if it fails to break the $0.1780 resistance. There is initial support found at the $0.1715 level, previous of which was the established bull trend line. IF this support is breached, the next big support level is around $0.1675. If things were to worsen, Dogecoin could retest its main support at $0.1630, a level that has so far been a sturdy foundation for the asset.
The fortune of a more robust correction would bring it below $0.1630, where selling pressure would be further fueled, likely dropping all the way down to $0.1500 or even $0.1420. This would be a change in the recent gains and could be a sign of a change in market sentiment for DOGE. Dogecoin, however, is unlikely to undergo a correction due to the bullish trend, and the strict support level on the technical indicators acts as the first obstacle to more ascent.
Both the hourly MACD for DOGE/USD is beginning to display bullish momentum, and the hourly RSI has moved above the 50 mark, indicating an increase in a buying interest. The next direction for DOGE is expected to be defined at $0.1780 and $0.1800 or key support levels at $0.1715 and $0.1675.
Conclusion
Dogecoin’s rise has rallied to a key moment signal of new highs as traders watch the key resistance at $0.1780 and $0.1800. Supply could break and further gains can be made or consolidation or retracement can test support levels. While optimism is high, robust caution retains its place as crypto markets remain volatile.
Stay tuned to TheBITJournal and keep an eye on Crypto’s updates. Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
