Charted: Dogecoin (DOGE) Surges 50%, Here’s Why The Bulls Are Not Done Yet
Dogecoin remained strong and it rallied further above $0.5000 against the US Dollar. DOGE surged over 50% and it traded to a new all-time high above $0.6500.
- DOGE extended its rally and it cleared the $0.5000 and $0.5500 resistance levels against the US dollar.
- The price is trading well above the $0.5000 zone and the 100 simple moving average (4-hours).
- There is a key bullish trend line forming with support near $0.4800 on the 4-hours chart of the DOGE/USD pair (data source from Bitfinex).
- The pair is likely to continue higher above the $0.6800 and $0.7000 levels in the near term.
Dogecoin Rallies To New ATH
Yesterday, we discussed the chances of more gains in dogecoin above the $0.5000 resistance zone. DOGE did gain pace above the $0.5000 resistance, outpacing bitcoin and ethereum.
It surged over 50% and it even cleared the $0.6500 level. A new all-time high is formed near the $0.6793, with a bullish angle. It is now trading well above the $0.5000 zone and the 100 simple moving average (4-hours).
An initial support is near the $0.6200 level. The first key support is near the $0.6050 level. It is close to the 23.6% Fib retracement level of the recent surge from the $0.3618 swing low to $0.6793 high. If there is a downside break below the $0.6000 support, the price could correct further.
The main support is forming near the $0.5200 and $0.5000 levels. The 50% Fib retracement level of the recent surge from the $0.3618 swing low to $0.6793 high is also near $0.5200. Moreover, there is a key bullish trend line forming with support near $0.4800 on the 4-hours chart of the DOGE/USD pair. Any more losses could open the doors for a move towards the $0.4000 level.
More Gains in DOGE?
If DOGE price remains stable above the $0.6000 support, there are chances of more gains. An initial resistance on the upside is near the $0.6750 level.
The first major resistance is near the $0.7000 level. Any more gains above the $0.7000 zone could encourage the bulls to aim a test the important $1 level.
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 in the overbought zone.
Major Support Levels — $0.6500, $0.6050 and $0.6000.
Major Resistance Levels — $0.6750, $0.7000 and $0.8000.