Dogecoin rallied this week from the $0.0022 support area and gained over 100% against the US Dollar. DOGE is currently facing a strong resistance near $0.0500 on the weekly chart.
- Dogecoin price gained heavily in the past few sessions and rallied more than 100% against the US dollar.
- The price spiked above the $0.0500 resistance, but it failed to settle and trimmed gains.
- Earlier, there was a break above a connecting bearish trend line with resistance near $0.0025 on the weekly chart of the DOGE/USDT pair (data source from Binance).
- The pair is currently down more than 40% from the local high and a massive weekly resistance.
Dogecoin Rally Facing Hurdles Near $0.005
In the past few days, there was a strong support base formed by dogecoin above $0.0020 against the US Dollar. DOGE broke a couple of important hurdles near the $0.00250 level to start a strong rally.
There was a break above a connecting bearish trend line with resistance near $0.0025 on the weekly chart of the DOGE/USDT pair. It opened the doors for a sharp increase and the pair rallied more than 100%.
It broke the $0.0040 resistance and settled well above the 100-week simple moving average. It even spiked above the $0.00450 and $0.0050 resistance level (outpaced other major cryptocurrencies, including bitcoin and Ethereum).
Dogecoin price rallies significantly. Source: TradingView.com
A new monthly high is formed near $0.0055 and the price is currently trimming gains. It seems like the bulls are facing a strong resistance near the $0.0050 weekly hurdle. It corrected below the 23.6% Fib retracement level of the recent rally from the $0.0011 swing low to $0.0055 high.
If there is a weekly close above the $0.0050 resistance level, there are chances of a sustained upward move. The next major resistance is seen near the $0.0055 and $0.0058 levels, followed by $0.0062.
Dips Supported in DOGE
If DOGE price corrects lower, it is likely to remain supported near the $0.0040 level. The next major support is near the $0.0034 level (the recent breakout zone) or the 50% Fib retracement level of the recent rally from the $0.0011 swing low to $0.0055 high.
Any further losses may perhaps put pressure on the bulls and the price could retreat towards the $0.0025 level in the coming days.
Technical Indicators
Weekly MACD – The MACD for DOGE/USDT is gaining momentum in the bullish zone.
Weekly RSI (Relative Strength Index) – The RSI for DOGE/USDT is rising and it is approaching the 85 level.
Major Support Levels – $0.0040, $0.0034 and $0.0025.
Major Resistance Levels – $0.0045, $0.0050 and $0.0055.
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