Dogecoin (DOGE) Bulls Flex Strength: Momentum Builds for Next Move
2025-01-06
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Dogecoin started a fresh increase above the $0.350 zone against the US Dollar. DOGE is now consolidating and might gain traction if it clears the $0.3880 resistance.
Dogecoin Price Holds Support
Dogecoin price started a fresh increase from the $0.3120 support, like Bitcoin and Ethereum. DOGE was able to surpass the $0.3350 resistance and $0.350. It even cleared the $0.3880 level before there was a downside correction.
A low was formed at $0.3750 and the price is now rising. There was a move above the $0.380 resistance. Besides, there was a break above a connecting bearish trend line with resistance at $0.3825 on the hourly chart of the DOGE/USD pair.
The pair climbed above the 50% Fib retracement level of the downward move from the $0.3986 swing high to the $0.3750 low. Dogecoin price is now trading above the $0.380 level and the 100-hourly simple moving average.
Immediate resistance on the upside is near the $0.3880 level or the 61.8% Fib retracement level of the downward move from the $0.3986 swing high to the $0.3750 low. The first major resistance for the bulls could be near the $0.3920 level.
The next major resistance is near the $0.40 level. A close above the $0.40 resistance might send the price toward the $0.420 resistance. Any more gains might send the price toward the $0.4380 level. The next major stop for the bulls might be $0.450.
Another Decline In DOGE?
If DOGE’s price fails to climb above the $0.3880 level, it could start another decline. Initial support on the downside is near the $0.380 level. The next major support is near the $0.3750 level.
The main support sits at $0.3650. If there is a downside break below the $0.3650 support, the price could decline further. In the stated case, the price might decline toward the $0.350 level or even $0.3420 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 – $0.380 and $0.3750.
Major Resistance Levels – $0.3880 and $0.3920.