Recovery Dogecoin (DOGE) Is Gaining Traction – Can It Unlock More Profits?

Dogecoin has started a novel rally from the $0.0850 zone against the US dollar. DOGE currently faces headwinds near $0.090 and may seek more upside.

DOGE price started a decent upward move above $0.0850 and $0.0880.
The price is above the $0.0870 level and the 100-hour uncomplicated moving average.
A bullish trend line is forming on the hourly chart of the DOGE/USD pair with support at USD 0.0870 (data source from Kraken).
The price may continue to rise if it stays above $0.0850.

Dogecoin price faces headwinds

Dogecoin price remained supported above the $0.0850 zone and started a novel rally, similar to Bitcoin and Ethereum. DOGE climbed above the $0.0865 and $0.0870 resistance levels.

The price increased by over 2% and tested the USD 0.0890 zone. There was a move above the 38.2% Fib retracement level as part of a move down from a high of $0.0920 to a low of $0.0855. Additionally, a bullish trend line is forming on the hourly chart of the DOGE/USD pair with support at USD 0.0870.

Dogecoin price is currently trading above the $0.0870 level and the 100-hour uncomplicated moving average. If the bulls remain busy, the price may be tempted to boost again. Immediate upside resistance is located near the $0.0890 level and the 50% Fib retracement level for a downward move from the $0.0920 high to the $0.0855 low.

The first major resistance for bulls may be near the $0.0905 level. The next major resistance is near the $0.0920 level. A close above the resistance at $0.0920 could push the price towards the resistance at $0.0950. Any further gains could push the price towards the $0.10 level. The next major stop for bulls could be $0.1050.

Another DOGE decline?

If the DOGE price does not rise above the $0.090 level, it may continue to decline. Initial downside support is near the $0.0870 level. The next significant support is near the $0.0855 level.

The main support is located at USD 0.0850. If there is a break below the support at $0.0850, the price may decline further. In this case, the price may move towards the level of USD 0.0820 or even USD 0.080 in the near future.

Technical indicators

Hourly MACD – The MACD for DOGE/USD is currently losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is currently above the 50 level.

Major support levels – USD 0.0870 and USD 0.0855.

Major resistance levels – USD 0.090 and USD 0.10.