Dogecoin Price Prediction: Doge Breaking This Single Level Will Spark Fresh Rally

2023-05-31 04:52:54

Dogecoin started a decent increase from the $0.0685 support against the US Dollar. DOGE could rally if it clears the $0.074 resistance zone.

DOGE is currently struggling to clear the $0.074 resistance against the US dollar.
The price is trading below the $0.0725 zone and the 100 simple moving average (4 hours).
There was a break above a major bearish trend line with resistance near $0.0722 on the 4-hours chart of the DOGE/USD pair (data source from Kraken).
The pair could start a fresh rally if it clears the $0.0740 resistance zone.

Dogecoin Price Aims Higher

After a sharp decline, Dogecoin’s price found support near the $0.0685 zone. DOGE formed a base and recently started a decent increase above $0.070, similar to Bitcoin and Ethereum.

There was a clear move above the $0.0720 resistance zone. The bulls pushed the price above the 50% Fib retracement level of the downward move from the $0.0755 swing high to the $0.0684 low. Besides, there was a break above a major bearish trend line with resistance near $0.0722 on the 4-hours chart of the DOGE/USD pair.

However, the bears were active near the $0.074 resistance. Dogecoin faced rejection near the 76.4% Fib retracement level of the downward move from the $0.0755 swing high to the $0.0684 low.

Doge is now trading below the $0.0725 zone and the 100 simple moving average (4 hours). It is holding the key $0.0718 support zone. On the upside, the price is facing resistance near the $0.0722 level. The first major resistance is near the $0.0740 level.

Source: DOGEUSD on TradingView.com

A close above the $0.074 resistance might send the price toward the $0.0775 resistance. The next major resistance is near $0.0800. Any more gains might send the price toward the $0.0825 level.

Downside Break in DOGE?

If DOGE’s price fails to gain pace above the $0.074 level, it could continue to move down. Initial support on the downside is near the $0.0718 level.

The next major support is near the $0.0700 level. If there is a downside break below the $0.070 support, the price could decline further. In the stated case, the price might decline toward the $0.0685 level.

Technical Indicators

4 Hours MACD – The MACD for DOGE/USD is now gaining momentum in the bearish zone.

4 Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.

Major Support Levels – $0.0718, $0.070, and $0.0685.

Major Resistance Levels – $0.0722, $0.0740, and $0.0775.

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