Dogecoin Price Prints Bullish Pattern, Why Close Above $0.08 Is Critical

Dogecoin formed a base near $0.066 and started a fresh increase against the US Dollar. DOGE could rise further if there is a close above the $0.080 resistance.

• DOGE gained pace and traded above the $0.075 resistance against the US dollar.
• The price is trading above the $0.0750 zone and the 100 simple moving average (4-hours).
• There is a key bullish trend line forming with support near $0.0740 on the 4-hours chart of the DOGE/USD pair (data source from Kraken).
• The pair could rise further if there is a clear close above the $0.080 resistance.

After a strong decline, dogecoin price found support near the $0.066 zone. DOGE remained well bid and started a steady increase above the $0.068 resistance.

There was a clear move above the $0.070 resistance zone to set the pace for a decent increase. The price cleared the 23.6% Fib retracement level of the key decline from the $0.1402 swing high to $0.0658 low. The price is now trading above the $0.0750 zone and the 100 simple moving average (4-hours).

There is also a key bullish trend line forming with support near $0.0740 on the 4-hours chart of the DOGE/USD pair. In the past few sessions, doge saw bullish moves above $0.075, similar to bitcoin and ethereum.

On the upside, the price is facing resistance near the $0.080 level. The first major resistance is near the $0.0820 level. A clear move above the $0.082 resistance might send the price towards the $0.088 resistance. It is near the 50% Fib retracement level of the key decline from the $0.1402 swing high to $0.0658 low.

Source: DOGEUSD on TradingView.com

Any more gains might send the price towards the $0.090 level. A clear move above the $0.090 resistance could open the gates for a rally towards the $0.100 level.

If DOGE price fails to gain pace above the $0.082 level, it could started a downside correction. An initial support on the downside is near the $0.0765 level.

The next major support is near the $0.074 level and the trend line. If there is a downside break below the $0.074 support, the price could decline further. In the stated case, the price might decline towards the $0.070 level.

Technical Indicators

4-Hours MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.

Major Support Levels – $0.0765, $0.0740 and $0.0700.

Major Resistance Levels – $0.080, $0.0850 and $0.088.