Dogecoin is gaining bullish pace above the $0.2320 support zone. DOGE price could soon follow Bitcoin and surge toward the $0.30 resistance.
Dogecoin Price Regains Bullish Momentum
In the last technical analysis, we saw a steady increase in Dogecoin price above the $0.20 and $0.220 resistance levels. The bulls were able to push the price toward $0.2620 before there was a downside correction. The price corrected some gains and traded below the $0.2320 level.
A low was formed at $0.2108 and the price started a fresh increase. The recent rise in Bitcoin to a new all-time high could fuel more gains in DOGE. The price cleared the 50% Fib retracement level of the downward wave from the $0.2594 swing high to the $0.2108 low. More importantly, the price surpassed a bullish flag pattern with resistance at $0.2350 on the daily chart.
Dogecoin is now showing positive signs above the $0.240 level and the 50-day simple moving average. The current price suggests that DOGE could soon accelerate higher.
Immediate resistance on the upside sits near the $0.2480 level. It is close to the 76.4% Fib retracement level of the downward wave from the $0.2594 swing high to the $0.2108 low. The first major resistance is near the $0.260 level. A close above the $0.260 and $0.2620 resistance levels could set the pace for a larger increase.
In the stated case, the price could surge and drift toward the $0.290 level or the 1.236 Fib extension level of the downward wave from the $0.2594 swing high to the $0.2108 low. The next key resistance sits near the $0.30 level. Any more gains might send DOGE price toward the $0.320 level in the coming days.
Are Dips Limited In DOGE?
Conversely, Dogecoin might struggle to surpass the $0.2480 resistance or $0.260. In the stated case, the price could start a short-term downside correction. Immediate support on the downside is near the $0.2320 level.
The next major support sits at the $0.220 level. If there is a close below the $0.220 support, the price might drop toward the $0.2110 support in the medium term. The main support could be $0.20. There is also a key bullish trend line forming with support near $0.1920 on the daily chart.
A downside break and close below the $0.1920 support might spark heavy bearish moves and might call for a test of the 50-day simple moving average.
Overall, DOGE is signaling a fresh increase above $0.2320. If it clears the $0.260 resistance, there could be a drift toward the $0.30 level. If not, it could revisit the $0.210 support.
