After a significant drop, the price of Dogecoin (DOGE) found support near the $0.0595 level. DOGE traded as low as $0.0591 and recently initiated a recovery wave. According to experts, there was a strong move above $0.0600 and the price settled above $0.0612.
Recently, Bitcoin has seen a steady increase above $27,000, which has helped the recovery of altcoins. Dogecoin, benefiting from the rise of Bitcoin, is showing several positive signs and managed to break the $0.062 resistance. The downward movement from the highest level of $0.0685 to the lowest level of $0.0591 was above the 23.6% Fib retracement level.
Currently, DOGE is trading above the $0.062 level and the 100 simple moving average. However, the popular meme token is facing resistance near the $0.0638 level. This indicates a downward movement from the highest level of $0.0685 to the lowest level of $0.0591, close to the 50% Fib retracement level.
According to analysts, the first major resistance is near $0.0640. Additionally, there is a significant ascending channel with resistance around $0.0640 on the 4-hour chart of DOGE/USD pair. A close above the $0.0620 resistance could lead to an upward movement towards the $0.0670 resistance. The next major resistance is near $0.0685, and further gains could push the price towards $0.072.
If the DOGE price fails to break above the $0.0640 level, a downward correction may occur. The first support on the downside is near $0.0620, followed by a major support near the $0.060 level. A break below the $0.060 support could further lower the price. In such a scenario, the Dogecoin price could drop to $0.0565. Additionally, the upcoming Federal Reserve decision this week could have a significant impact on Bitcoin and other altcoins.