• Dogecoin formed a base near $0.066 and started a fresh increase against the US Dollar.
• There is a key bullish trend line forming with support near $0.0740 on the 4-hours chart of the DOGE/USD pair.
• If there is a clear close above the $0.080 resistance, the price could rise further towards the $0.088 resistance.
Dogecoin has seen a rise in price over the past few weeks, trading above the $0.0750 level against the US dollar. The cryptocurrency has found support near the $0.066 zone and is now trading above the $0.0750 zone and the 100 simple moving average (4-hours). Additionally, there is a key bullish trend line forming with support near $0.0740 on the 4-hours chart of the DOGE/USD pair.
The recent increase in Dogecoin price was kickstarted by a strong decline which found support near the $0.066 zone. DOGE then started a steady increase and moved above the $0.070 resistance zone to set the pace for a decent increase. The price cleared the 23.6% Fib retracement level of the key decline from the $0.1402 swing high to $0.0658 low.
Currently, Dogecoin is trading in a bullish zone above the $0.0750 level and the 100 simple moving average (4-hours). If buyers can push the price above the $0.080 resistance, there could be further gains towards the $0.088 resistance. This level is near the 50% Fib retracement level of the key decline from the $0.1402 swing high to $0.0658 low.
On the downside, the first major support is near the $0.0740 level. The trend line support is also near this level. If there is a downside break below the $0.0740 support, the price could start a fresh decline. The main support levels are near $0.0700 and $0.066. Any further losses may call for a test of the $0.0560 support.
Overall, Dogecoin is currently trading nicely above the $0.0750 level and the 100 simple moving average (4-hours). To start a strong rally, buyers need to gain momentum above the $0.080 resistance. If they succeed, the price could rise further towards the $0.088 resistance. On the other hand, if there is a downside break below the $0.0740 support, the price could start a fresh decline.