DOGE Price Sets Up For Another Rally; Why Dogecoin Could Surge 20%

Key Takeaways:

• Dogecoin price is holding gains above the $0.160 support zone.
• DOGE is facing resistance near a key bearish trend line at $0.20 on the daily chart.
• The bulls seem to be aiming for a move toward the $0.250 resistance.

NEW DELHI (CoinChapter.com) — DOGE is gaining bullish momentum above $0.1750. If it settles above the $0.20 resistance, the Dogecoin price could surge over 20%.

Dogecoin Price Aims Higher

After a decent rally to $0.2285, Dogecoin saw a downside correction. It traded below the $0.20 and $0.180 support levels. However, the bulls were active above the $0.1650 support zone and the 50-day simple moving average (blue).

A low was formed at $0.1673 and the price is now rising, like Bitcoin and Ethereum. There was a decent increase above the $0.1850 resistance zone. DOGE price even spiked above the 50% Fib retracement level of the downward move from the $0.2286 swing high to the $0.1673 low.

Recently, the US CPI report was released. It increased by 3.5% in March 2024 (YoY), more than the market expectation. It reduced hopes of a rate cut by the Fed in June 2024. Initially, BTC, ETH, and DOGE reacted to the downside, but the market is now recovering.

Dogecoin price faces resistance near a key bearish trend line at $0.20 on the daily chart. It seems like the price could repeat the previous trend line break pattern and continue higher.

On the upside, the price faces resistance near the $0.20 level. The first major resistance is near the $0.2050 level or the 61.8% Fib retracement level of the downward move from the $0.2286 swing high to the $0.1673 low.

A clear move above the $0.2050 level could easily send Dogecoin toward the $0.2280 level. If the bulls remain in action above the $0.2280 level, it could open the doors for a move toward the $0.250 level.

Another Decline In DOGE?

Conversely, the DOGE price might start another downside correction. Immediate support is seen near the $0.18500 level. The first major support is forming at $0.180. On the same chart, there is also a connecting bullish trend line with support at $0.1785.

The main support is now forming near the $0.160 zone or the 50-day simple moving average (blue). If the bulls fail to defend the $0.160 support, it could spark heavy losses. In the stated case, the bears could aim for a downside thrust toward the $0.1240 support region.

Overall, DOGE is gaining bullish momentum above the $0.1850 zone. It seems like they could soon aim for more upsides toward the $0.2280 level and then $0.250 in the coming days.