Key Takeaways:
- Dogecoin price extended gains above $0.40 before it started a consolidation phase.
- DOGE cleared a key contracting triangle with resistance at $0.4080 on the daily chart.
- The price is holding gains and might aim for a fresh move above $0.450 and $0.500.
Dogecoin is trading in a positive zone above $0.3720. DOGE price is beating Bitcoin and might soon aim for a move above $0.50.
Dogecoin Price Holds Key Uptrend Support
In the last technical analysis, we saw a major increase in Dogecoin above the $0.200 and $0.300 resistance levels. The bulls were able to push the price above the $0.350 resistance and the 50-day simple moving average.
Finally, it tested the $0.440 resistance and corrected some gains. A low was formed at $0.3074 and the price started a fresh surge. DOGE cleared a key contracting triangle with resistance at $0.4080 on the daily chart. It traded as high as $0.4780 and is currently consolidating gains.
Dogecoin is now trading above the $0.40 support and the 50% Fib retracement level of the upward move from the $0.3400 swing low to the $0.4780 high.
The current price action is bullish and suggests that the price could continue to rise above $0.440. Immediate resistance sits near the $0.4450 level. The first major resistance is near the $0.4780 level. A clear move above the $0.4780 resistance could send the price toward the $0.0.50.
The next key resistance sits near the $0.0.520 zone, above which the price could accelerate higher toward $0.5450. Any more gains might send DOGE price toward the $0.620 level in the coming days.
More Downsides In DOGE?
Conversely, Dogecoin might fail to surpass the $0.4450 resistance. In the stated case, the price could start another downside correction. Immediate support on the downside is near the $0.4080 level or the same triangle’s trend line.
The first major support is near the $0.3720 level or the 76.4% Fib retracement level of the upward move from the $0.3400 swing low to the $0.4780 high, below which the price might drop and test $0.340.
The next major support sits at the $0.3075 level. If the bulls fail to defend the $0.3075 support, the price might drop toward $0.2200 and the 50-day simple moving average.
Overall, DOGE is holding gains above $0.40. To continue higher, DOGE must surpass the $0.4450 and $0.500 resistance levels in the near term.
