Dogecoin started a fresh increase above $0.220 and $0.250. DOGE price is showing positive signs and might extend gains above $0.2720.
Dogecoin Price Turns Attractive On Dips
In the last few days, Dogecoin price saw a decent increase from $0.2170. The bulls contained losses and pushed the price back above $0.220. There was a clear move above the 23.6% Fib retracement level of the downward move from the $0.3064 swing high to the $0.2170 low.
DOGE settled above $0.240 and the 50-day simple moving average. However, the bears are now active near the $0.2620 resistance zone since it is close to the 50% Fib retracement level of the downward move from the $0.3064 swing high to the $0.2170 low. It is now consolidating gains below $0.2620, underperforming Bitcoin.
Dogecoin now shows a couple of bearish signs and might see a mild pullback. However, if it stays above $0.2320 and the 50-day simple moving average, there could be a fresh increase. Besides, there is a key bullish trend line forming with support at $0.2380 on the daily chart.
Immediate resistance on the upside is $0.2620. The first major hurdle sits at $0.2720. A close above $0.2720 could send DOGE to $0.2850. To remain in a bullish zone and increase bullish pressure, the price must be above $0.30.
In the stated case, the price could rally and test $0.3275 since it coincides with the 1.236 Fib extension level of the downward move from the $0.3064 swing high to the $0.2170 low. The next key target might be $0.350. Any more gains might send the price toward the $0.3620 hurdle in the coming days.
Downside Break In DOGE?
If Dogecoin stays below $0.2720, there could be a bearish reaction. Immediate support on the downside is $0.240. The next major support sits near $0.2350, the 50-day simple moving average, and the trend line.
If the bulls fail to defend $0.2350, the price might accelerate lower and drop toward $0.220. The first major target for the bears could be $0.2060.
A downside break and close below $0.2060 might spark heavy bearish moves and might call for a test of the $0.1740 region. Any more losses might send DOGE to $0.1440.
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Overall, DOGE is consolidating gains above $0.2350 and $0.2220. To start a fresh increase, the price must be above $0.2620 and $0.2720. If not, DOGE could trim gains and revisit $0.2060.