Dogecoin (DOGE) Heats Up: Upside Move Hints at Major Breakout Ahead

Dogecoin started a fresh increase and climbed above the $0.2420 zone against the US Dollar. DOGE is now correcting gains and might start another increase.

• DOGE price started a fresh increase above the $0.2320 and $0.2420 levels.
• The price is trading above the $0.2420 level and the 100-hourly simple moving average.
• There is a connecting bullish trend line forming with support at $0.2460 on the hourly chart of the DOGE/USD pair (data source from Kraken).
• The price could start a fresh increase if it clears the $0.2550 resistance zone.

Dogecoin Price Extends Gains

Dogecoin price started a fresh increase after it found support near $0.2220, like Bitcoin and Ethereum. DOGE climbed and recovered above the $0.2350 resistance zone.

The bulls even pushed the price above the $0.2420 resistance zone. However, the bears were active near the $0.2550 level. A high was formed at $0.2542 and the price is now correcting some gains. There was a move below the 23.6% Fib retracement level of the upward move from the $0.2227 swing low to the $0.2542 high.

Dogecoin price is now trading above the $0.2450 level and the 100-hourly simple moving average. There is also a connecting bullish trend line forming with support at $0.2460 on the hourly chart of the DOGE/USD pair.

Immediate resistance on the upside is near the $0.2550 level. The first major resistance for the bulls could be near the $0.2620 level. The next major resistance is near the $0.2650 level. A close above the $0.2680 resistance might send the price toward the $0.280 resistance. Any more gains might send the price toward the $0.2840 level. The next major stop for the bulls might be $0.30.

Downside Correction In DOGE?

If DOGE’s price fails to climb above the $0.2550 level, it could start another decline. Initial support on the downside is near the $0.2450 level and the trend line. The next major support is near the $0.2385 level and the 50% Fib retracement level of the upward move from the $0.2227 swing low to the $0.2542 high.

The main support sits at $0.2320. If there is a downside break below the $0.2320 support, the price could decline further. In the stated case, the price might decline toward the $0.220 level or even $0.2120 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 – $0.2450 and $0.2350.

Major Resistance Levels – $0.2550 and $0.2620.