Dogecoin extended its rally above the USD 0.4000 resistance against the US dollar. DOGE tested the $ 0.4500 zone and it is likely that it will continue to rise in the near future.
- DOGE gained bullish momentum above the $ 0.3500 and $ 0.4000 resistance levels against the US dollar.
- The price is trading well above the USD 0.3000 support and the 100 simple moving average (4 hours).
- A key bullish trendline is forming on the 4-hour chart of the DOGE / USD pair (data source from Bitfinex) with a support near USD 0.3600.
- The pair is correcting gains but drops should remain limited below $ 0.3500.
Dogecoin rallies to $ 0.45
After Dogecoin formed a base above the $ 0.2800 and $ 0.3000 levels, it started a new rally. It broke many major hurdles near the $ 0.3500 and $ 0.3550 levels and topped Bitcoin.
DOGE bounced back above the $ 0.4000 mark and was above the simple moving average of 100 (4 hours). It tested the $ 0.4500 resistance zone and a high was formed near $ 0.4512. The price is now correcting gains and trading below the $ 0.4400 level.
It was below the $ 0.4200 support zone. There was a break below the 23.6% fib retracement level of the recent rally from the low of $ 0.2971 to the high of $ 0.4512.
Source: DOGEUSD on TradingView.com
On the downside, initial support is close to the $ 0.4000 level. The next big support is seen near the $ 0.3750 level. It is close to the 50% Fib retracement level of the recent rally from the low of $ 0.2971 to the high of $ 0.4512.
The main support forms near the USD 0.3600 and USD 0.3500 levels. There is also a key bullish trendline forming with support near $ 0.3600 on the 4-hour chart for the DOGE / USD pair. Further losses could open the doors for a move towards the $ 0.3000 level.
Further advantages in DOGE
If DOGE price stays stable above the USD 0.4000 support or trendline, there is a possibility of further upward movement. Initial resistance to the upside is near the $ 0.4350 level.
The first major resistance is near the $ 0.4500 level. Further gains and a sharp close above $ 0.4500 could set the pace for a move towards the $ 0.5000 resistance zone.
4 Hour MACD – The DOGE / USD MACD is now gaining momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for DOGE / USD is now above the 50 level.
Major support levels – $ 0.4000, $ 0.3750, and $ 0.3600.
Main Resistance Levels – $ 0.4350, $ 0.4500, and $ 0.5000.