Dogecoin gained pace for a move above the $0.250 barrier. DOGE price is consolidating gains and might see a short-term downside correction.
Dogecoin Price Regains Pace
In the last few days, Dogecoin price saw a decent upward move from the $0.180 support zone. DOGE followed Bitcoin to enter a positive zone. The bulls were able to clear the key resistance at $0.20 to start a fresh uptrend.
There was a break above a key bearish trend line with resistance at $0.2150 on the daily chart. It opened the doors for a move above the 76.4% Fib retracement level of the downward move from the $0.2594 swing high to the $0.1432 low.
Dogecoin is now trading above the $0.250 support and the 50-day simple moving average. It gained over 20% in the past few days and the current price suggests that the bulls could aim for more gains.
Immediate resistance on the upside sits near the $0.2750 level. The first major resistance is near the $0.2850 level. It is near the 1.236 Fib extension level of the downward move from the $0.2594 swing high to the $0.1432 low. A close above the $0.1800 and $0.1850 resistance levels could set the pace for a larger increase.
In the stated case, the price could rise and drift toward the $0.320 level. The next key resistance sits near the $0.3320 level or the 1.618 Fib extension level of the downward move from the $0.2594 swing high to the $0.1432 low. Any more gains might send DOGE price toward the $0.350 level in the coming days.
Are Dips Limited In DOGE?
Conversely, Dogecoin might struggle to surpass the $0.280 resistance or $0.2850. In the stated case, the price could start a downside correction. Immediate support on the downside is near the $0.2580 level.
The next major support sits at the $0.2350 level. If there is a close below the $0.2350 support, the price might accelerate lower and drop toward the $0.220 support in the medium term. The main support could be $0.2120. A downside break and close below the $0.2120 support might spark heavy bearish moves and might call for a test of the $0.180 level.
Overall, DOGE is signaling a decent uptrend above the $0.2350 support. If DOGE settles above $0.280 and $0.2850, it could extend gains toward $0.3320. If not, Dogecoin price could revisit the $0.2120 support.