Key Takeaways:
- Dogecoin price is finding bids above the $0.0550 support.
- DOGE follows a major bearish trend line with resistance near $0.0670 on the daily chart.
- The price could increase significantly if there is a clear move above $0.070 and then $0.075.
NEW DELHI (CoinChapter.com) — DOGE declined heavily below the $0.070 support. Dogecoin price could soon recover and outperform other altcoins if it clears $0.070.
Dogecoin Price Eyes Recovery
In the past few days, there was a strong decline in Doge price from well over $0.085 against the US Dollar. The price dropped over 15% and traded below the $0.075 support.
However, downsides were limited compared to ADA, BNB, MATIC, and other major altcoins. It settled below the $0.070 pivot level and the 50-day simple moving average (blue). It traded as low as $0.0540 and is currently attempting a recovery wave.
A spike candle is forming on the daily chart, and the price is recovering above $0.060. Immediate resistance on the upside is near the $0.0635 level. It is close to the 23.6% Fib retracement level of the downward move from the $0.0951 high to the $0.0540 low.
The first major resistance is near the $0.067 zone. A major bearish trend line is in place, with resistance near $0.0670 on the daily chart.
A clear move above the trend line might increase the price towards the $0.070 resistance, above which DOGE could rise toward the $0.075 resistance. It is close to the 50% Fib retracement level of the downward move from the $0.0951 high to the $0.0540 low.
Any more gains might send the price toward the $0.092 resistance.
Conversely, the price might fail to clear the $0.0635 and $0.067 resistance levels. Immediate support on the downside is near the $0.060 level. The next major support is nearly $0.055.
If a downside break below the $0.055 support occurs, the price might gain bearish momentum toward $0.052. Any more losses could open the doors for a move toward the crucial support at $0.050.
Overall, DOGE is signaling a recovery wave above the $0.062 level. It could steadily increase if the Dogecoin price clears the $0.070 resistance zone. Conversely, more downsides could be toward the next crucial support at $0.050.
