Dogecoin (DOGE) Eyes Breakout: Could an Upside Rally Spark Full-On Recovery?

Dogecoin started a fresh increase from the $0.1500 zone against the US Dollar. DOGE is consolidating and might aim for an upside break above the $0.1650 resistance.

• DOGE price started a decent upward move above the $0.1550 level.

• The price is trading above the $0.1580 level and the 100-hourly simple moving average.

• There is a short-term bullish trend line forming with support at $0.1590 on the hourly chart of the DOGE/USD pair (data source from Kraken).

• The price could start a fresh increase if it clears the $0.1650 resistance zone.

Dogecoin Price Turns Red

Dogecoin price started a fresh decline after it failed to clear $0.1640, unlike Bitcoin and like Ethereum. DOGE dipped below the $0.1620 and $0.1600 support levels.

The bears were able to push the price below the $0.1565 support level. It even traded close to the $0.1550 support. A low was formed at $0.1558 and the price recently corrected some losses. There was a minor move above the 50% Fib retracement level of the downward move from the $0.1635 swing high to the $0.1558 low.

Dogecoin price is now trading above the $0.1580 level and the 100-hourly simple moving average. Besides, there is a short-term bullish trend line forming with support at $0.1590 on the hourly chart of the DOGE/USD pair.

Immediate resistance on the upside is near the $0.1620 level and the 76.4% Fib retracement level of the downward move from the $0.1635 swing high to the $0.1558 low. The first major resistance for the bulls could be near the $0.1640 level.

The next major resistance is near the $0.1650 level. A close above the $0.1650 resistance might send the price toward the $0.1720 resistance. Any more gains might send the price toward the $0.1780 level. The next major stop for the bulls might be $0.1800.

Another Decline In DOGE?

If DOGE’s price fails to climb above the $0.1620 level, it could start another decline. Initial support on the downside is near the $0.1590 level. The next major support is near the $0.1565 level.

The main support sits at $0.1550. If there is a downside break below the $0.1550 support, the price could decline further. In the stated case, the price might decline toward the $0.1500 level or even $0.1450 in the near term.

Technical Indicators

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

• Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.

• Major Support Levels – $0.1590 and $0.1550.

• Major Resistance Levels – $0.1620 and $0.1640.