Dogecoin, a cryptocurrency created as a joke, has seen a recent increase in value as it started a rally from its $0.0685 support against the US dollar. Despite facing resistance near the $0.074 level, Dogecoin could continue its upward movement if it clears this resistance zone.
After a sharp decline, Dogecoin’s price found support near the $0.0685 zone and recently started a decent increase above $0.070. In a similar trend to Bitcoin and Ethereum, there was a clear move above the $0.0720 resistance zone.
Bulls pushed the price above the 50% Fibonacci retracement level of the downward move from the $0.0755 swing high to the $0.0684 low. Additionally, a major bearish trend line with resistance near $0.0722 on the 4-hour chart of the DOGE/USD pair was broken.
However, the bulls met resistance near the $0.074 level, preventing the price from moving higher. Dogecoin is currently trading below the $0.0725 zone and the 100 simple moving average (4 hours), but it is holding the key support zone of $0.0718.
On the upside, the price is facing resistance near the $0.0722 level, with the first major resistance at $0.0740. A close above the $0.074 level could send the price towards the $0.0775 and $0.0800 resistance levels, and potentially $0.0825.
If the price fails to gain pace above the $0.074 level, it could continue to move downwards, with initial support on the downside at the $0.0718 level. The next major support is near the $0.0700 level, and if this support is broken, the price could decline further towards the $0.0685 level.
The MACD (moving average convergence divergence) for DOGE/USD is now gaining momentum in the bearish zone, while the RSI (relative strength index) is below the 50 level.
Dogecoin’s current price performance has sparked interest and debate among traders, investors, and crypto enthusiasts alike. Some attribute it to the increased adoption of cryptocurrencies, while others point out the unique culture surrounding Dogecoin and its growing popularity.
Dogecoin has also gained attention beyond the crypto community, with public figures such as Tesla CEO Elon Musk tweeting about it and even supporting its development.
Despite its humorous origins and lack of a clear purpose, Dogecoin’s unique branding has made it a popular cryptocurrency among internet communities. Its recent rally signals that Dogecoin might continue to make waves in the cryptocurrency market.