Dogecoin (DOGE) Stands Strong: Are Bulls Preparing for a New Surge?

Dogecoin is holding gains above the $0.340 zone. DOGE price is now consolidating and might aim for an upside break above $0.40.

Dogecoin Price Could Regain Momentum

After forming a base above the $0.280 zone, Dogecoin price started a fresh increase. It climbed above the $0.30 and $0.3150 resistance levels to remain in a bullish zone. However, upsides were limited like Ethereum while Bitcoin traded to a new all-time high.

The bulls tried to clear the 61.8% Fib retracement level of the downward wave from the $0.4845 swing high to the $0.2630 low. However, they failed and the price remained below $0.40.

Dogecoin is now consolidating above the $0.350 level and the 50-day simple moving average. The last daily candle signals a bullish bias but there are many hurdles on the upside.

Immediate resistance on the upside sits near the $0.3850 level. The first major resistance is near the $0.40 level. A clear move above the $0.40 resistance could send the price further higher. The next key resistance sits near the $0.4330 zone or the 76.4% Fib retracement level of the downward wave from the $0.4845 swing high to the $0.2630 low.

If there is a close above the $0.4330 zone, the price could accelerate higher toward $0.480. Any more gains might send DOGE price toward the $0.50 level in the coming days.

Conversely, Dogecoin might fail to surpass the $0.40 resistance. In the stated case, the price could start another decline. Immediate support on the downside is near the $0.340 level. There is also a key rising channel forming with support at $0.340 on the daily chart.

The first major support is near the $0.3150 level, below which the price might drop and test $0.3050. The next major support sits at the $0.2640 level. If the bulls fail to defend the $0.2640 support, the price might drop toward $0.2350 or even $0.220 in the medium term.

Overall, DOGE is holding gains above $0.340 and $0.3150. To start a decent increase, DOGE must surpass the $0.3850 and $0.400 resistance levels in the near term. If not, it could revisit the $0.3050 support.

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