Dogecoin has been showing positive signs of recovery against the US Dollar, with the price currently above the $0.0642 level. The cryptocurrency’s price could continue to rise as long as it remains above the $0.0606 support level.
After experiencing a significant decline, Dogecoin found support near the $0.055 zone and started a fresh increase. It was able to break above the $0.0600 resistance and settle above $0.0606. Similar to Bitcoin and Ethereum, Dogecoin recently saw a strong increase in price.
The cryptocurrency was able to climb above the 50% Fibonacci retracement level of the main decline, which was from the $0.0772 swing high to the $0.0557 low. Additionally, there was a break above a key bearish trend line with resistance near $0.0630.
Currently, Dogecoin is trading above the $0.065 level and the 100 simple moving average (4 hours). The price may face resistance near the $0.0665 level, with the first major resistance being at $0.0690 or the 61.8% Fibonacci retracement level. If the price continues to rise, it could reach the next major resistance at $0.0780, and potentially even $0.080.
On the other hand, if Dogecoin fails to gain momentum above the $0.0690 level, it could initiate a downside correction. The initial support on the downside is near the $0.0642 level, followed by the $0.0606 level. If the price breaks below this support, it could decline further towards the $0.055 level.
In terms of technical indicators, the MACD for DOGE/USD on the 4-hour chart is gaining momentum in the bullish zone. The RSI (Relative Strength Index) is currently above the 50 level, indicating positive momentum.
In summary, Dogecoin is currently on a recovery path against the US Dollar, with positive signs of upward movement. If it continues to stay above the $0.0606 support level, it could experience further growth. However, if it fails to gain momentum and breaks below the support levels, a downside correction may occur. Traders and investors should keep an eye on key resistance and support levels for potential trading opportunities.
