Dogecoin Price Soars 25%, Why DOGE Bulls Are Not Done Yet

Dogecoin is up over 25% against the US Dollar. DOGE cleared the $0.120 resistance and might continue to rise toward the $0.132 resistance.

• DOGE started a strong increase after it broke the $0.0850 resistance against the US dollar.
• The price is trading above the $0.120 level and the 100 simple moving average (4 hours).
• There was a break above a key contracting triangle with resistance at $0.0845 on the 4-hour chart of the DOGE/USD pair (data source from Kraken).
• The price could extend its rally above the $0.1280 and $0.130 resistance levels.

Dogecoin Price Pumps Above $0.12

In the past few sessions, Dogecoin price started a strong increase from the $0.080 support zone. DOGE cleared many hurdles near $0.0850 to enter a positive zone.

There was a break above a key contracting 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 a positive zone like Bitcoin and Ethereum.

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

Source: DOGEUSD on TradingView.com

DOGE is also trading above the $0.1220 level and the 100 simple moving average (4 hours). On the upside, the price is facing resistance near the $0.1280 level. The next major resistance is near the $0.1320 level. A close above the $0.1320 resistance might send the price toward the $0.1450 resistance. The next major resistance is near $0.150. Any more gains might send the price toward the $0.1620 level.

Downside Correction in DOGE?

If DOGE’s price fails to gain pace above the $0.1280 level, it could start 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 high. If there is a downside break below the $0.1065 support, the price could decline further. In the stated case, the price might decline toward the $0.100 level.

Technical Indicators

4 Hours MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone.

4 Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now in the overbought zone.

Major Support Levels – $0.120, $0.1065 and $0.10.

Major Resistance Levels – $0.1280, $0.1320, and $0.150.