Dogecoin Gains Strong Support: Is DOGE Ready for a Significant Surge?

June 6, 2024 · Crypto News, TGbot · Source:NewCoinSpot

Dogecoin (DOGE) has broken through the $0.160 resistance level against the US Dollar. The cryptocurrency is maintaining its upward momentum and is poised to surpass $0.1650.

In recent days, Dogecoin’s price has steadily climbed above the $0.1500 region, mirroring the trends seen in Bitcoin and Ethereum. The bulls have successfully pushed DOGE above the critical $0.160 resistance level.

A recent high was formed around $0.1646 before the price began a downward correction, falling below the $0.1620 support zone. The price dipped beneath the 23.6% Fibonacci retracement level, drawn from the $0.1571 swing low to the $0.1646 high.

Currently, Dogecoin is trading above $0.160 and the 100-hour simple moving average (SMA). A key bullish trend line has also formed on the hourly chart of the DOGE/USD pair, providing support around the $0.160 level.

Key Levels to Watch

Resistance Levels

  • $0.1640: Immediate resistance is near this level.
  • $0.1650: The next major resistance point. A close above this could propel the price to $0.1720.
  • $0.1720 and $0.1750: Further gains might push the price towards these levels.
  • $0.1800: This could be the next major stop for the bulls if the upward trend continues.

Support Levels

  • $0.1600: Initial support, bolstered by the trend line.
  • $0.1580: A significant support level.
  • $0.1520: If the price breaks below $0.1580, it could decline towards this level.

Potential Outcomes

If Dogecoin fails to break past the $0.1650 resistance, it might face another downward correction. The initial support on the downside is near the $0.160 level and the trend line. This level aligns with the 50% Fibonacci retracement level of the recent uptrend from the $0.1571 swing low to the $0.1646 high.

Breaking below $0.160 could bring the price down to the next major support at $0.1580. A breach of this support might trigger further declines, potentially pushing the price towards $0.1520.

Dogecoin is showing promising signs of a bullish breakout. Maintaining its position above $0.160 and surpassing the $0.1650 resistance could set the stage for a significant upward movement. Traders should monitor these key levels closely to gauge the next potential moves for DOGE.