Dogecoin Kicks Off New Rally: Here’s Why A 20% Extension In Gains Is Likely

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Key Takeaways:

Dogecoin price started a fresh surge from the $0.1150 zone.
DOGE cleared a crucial bearish trend line with resistance at $0.1280 on the daily chart.
The price could extend gains by 20% and revisit the $0.1740 resistance in the near term.

New Delhi(CoinChapter.com): DOGE is signaling a fresh upside break above $0.1280. Dogecoin price could rally further once it clears the $0.1550 resistance.

Dogecoin Price Gains Over 15%

After a sharp decline below $0.100, Dogecoin found support near $0.0918. The price started a decent recovery wave and stabilized above $0.1100. Recently, DOGE formed a base and started a fresh surge above the $0.120 resistance zone.

It cleared a crucial bearish trend line with resistance at $0.1280 on the daily chart. The bulls were able to pump the price above the 50% Fib retracement level of the downward move from the $0.1743 swing high to the $0.0918 low.

*Dogecoin price daily chart | Source: DOGE/USD on TradingView.com*

The price is now trading well above the 50-day simple moving average. In the past 2-3 sessions, Dogecoin outperformed Bitcoin and Ethereum. It climbed above the $0.140 level and tested the 61.8% Fib retracement level of the downward move from the $0.1743 swing high to the $0.0918 low.

It seems like the price is facing a minor resistance at $0.1428. The first major resistance is forming at $0.1550. A close above the $0.1550 resistance zone could send the price further higher.

The next key resistance sits near the $0.1743 high, above which the price could accelerate higher. In the stated case, DOGE could rise and test the $0.1935 resistance.

Pullback In DOGE?

Conversely, Dogecoin might fail to surpass the $0.1428 resistance or the $0.1550 pivot zone. If there is a pullback, the price might test the $0.1335 support zone. The first support sits near the $0.1280 level and the 50-day simple moving average (the recent breakout zone).

If there is a downside break and close below the 50-day simple moving average, the price could gain bearish momentum. The next major support sits at $0.1140. If the bulls fail to defend the $0.1140 support, the price might even struggle to stay above $0.1050. The next key support sits near the $0.0920 region.

Overall, DOGE is showing signs of strength above $0.1280 and $0.1320. To continue higher, the price must settle above the $0.1428 and $0.1550 resistance levels in the coming days.

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