Dogecoin, has recently experienced a noticeable recovery against the dollar. Starting from the level of $0.1220, DOGE is trying to gain upward momentum, and it must pass a test by breaking through significant resistance levels to trigger an increase toward $0.200. So, what does this test include for DOGE?
Volatility Proves to Be a Tough Test for Dogecoin
The volatility in the cryptocurrency markets indicated a challenging period for Dogecoin as well. However, a solid base formed at the support level of $0.1220. DOGE, along with leading cryptocurrencies such as Bitcoin and Ethereum, has recently initiated a strong recovery wave.
Currently, a significant breakout occurred on the 4-hour chart of the DOGE/USD pair, and momentum was observed above the $0.1310 resistance level. However, Dogecoin is still trading below the $0.1650 level and the 100 simple moving average, posing a barrier to short-term gains.
Upon evaluation, Dogecoin needs to rise above the $0.160 level and, more importantly, surpass the $0.1650 resistance. In this case, we could see DOGE embark on a journey towards the $0.1850 target.
However, for a larger gain, a resistance around $0.200 needs to be broken. If Dogecoin can surpass this level, a move towards higher levels like $0.220 could be possible.
Potential Downward Movement for DOGE
If DOGE’s price fails to gain momentum above the $0.160 level, it could enter a downtrend. In this case, the first support point for the downward movement would be around $0.1450. However, if a deeper decline occurs, the next critical support level is determined to be around $0.130. If a breakdown occurs below this level, the price could fall further. In this scenario, DOGE’s price could drop to as low as $0.1150.
According to technical indicators, the 4-hour MACD is giving a bullish signal for the DOGE/USD pair and appears to be gaining momentum. Similarly, the 4-hour RSI is trending above the 50 level. This could be interpreted as a sign of short-term optimism.
The main support levels that investors should pay attention to are $0.1450, $0.130, and $0.1150. On the other hand, the recorded resistance levels are $0.1580, $0.160, and $0.1650.
