Currently, Dogecoin (DOGE) price maintains its gains above the crucial support level of $0.160. However, it encounters resistance near a significant bearish trend line situated at $0.20 on the daily chart. Despite this hurdle, bullish momentum persists as the bulls target a potential breakthrough towards the resistance level at $0.250.
Dogecoin (DOGE) is experiencing a bullish trend, surpassing the $0.1750 mark. If it manages to establish support beyond the resistance level at $0.20, there’s potential for a significant surge in the Dogecoin price, potentially exceeding 20%.
DOGE Price Analysis: Key Support Holds Amidst Volatility
Following a peak at $0.2285, Dogecoin underwent a corrective phase, slipping below crucial support levels like $0.20 and $0.180. However, it discovered robust support near $0.1650, coupled with the 50-day Simple Moving Average (SMA).
Bouncing back from a low of $0.1673, DOGE has embarked on an upward trajectory, mirroring the positive movement of Bitcoin and Ethereum. It managed to surpass the resistance at $0.1850 and breached the 50% Fibonacci retracement level from its recent downturn.
Dogecoin price daily chart | Source: DOGE/USD on TradingView.com
The release of the US Consumer Price Index (CPI) report, revealing a 3.5% rise in March 2024 (Year-over-Year), initially triggered a downturn across BTC, ETH, and DOGE prices. Nevertheless, the market is now in recovery mode, fueled by diminishing expectations of a Fed rate cut in June 2024.
A WSJ analysis found that a commonly purchased basket of supermarket goods has increased in price by 36.5% over the past 4 years (+8.1% per year). This is much higher than the US Government CPI figures which show food price inflation of 25.2% over the last 4 years (+5.8% per… pic.twitter.com/DJhFdZIZtr
— Peter Mallouk (@PeterMallouk) April 11, 2024
On the daily chart, Dogecoin encounters resistance at a critical bearish trend line around $0.20. There’s a possibility that the price may replicate the pattern of breaking this trend line, signaling a continuation of its upward trend.
Immediate resistance levels include $0.20, followed by the $0.2050 mark or the 61.8% Fibonacci retracement level from the recent downturn. A decisive breach above $0.2050 could propel DOGE towards $0.2280. Sustained bullish momentum beyond $0.2280 may lead to a target of $0.250.
DOGE Price Analysis: Bullish Momentum, Downside Risks
In the event of a potential downside correction, immediate support for DOGE is visible around the $0.1850 level. Should the price retreat further, the first significant support level forms at $0.180. Additionally, a connecting bullish trend line on the same chart offers support at $0.1785.
However, the primary support zone is currently taking shape near $0.160, coinciding with the 50-day Simple Moving Average (SMA). Failure to defend this crucial level may result in substantial losses. In such a scenario, bears could target a downward thrust towards the $0.1240 support region.
On a brighter note, DOGE continues to gather bullish momentum above the $0.1850 zone. This suggests a potential for further upside movements, potentially aiming towards the $0.2280 level and eventually $0.250 in the days ahead.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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