Dogecoin (DOGE) Rally Expected, Resistance Level Key to Break

Dogecoin is currently in a phase of consolidation just above the $0.2420 support level. There is potential for a significant surge in DOGE price if it manages to establish itself above the $0.280 resistance level.

In the recent past, Dogecoin experienced a downtrend below the $0.30 support mark, breaking through key support levels at $0.280 and $0.2650. The price even dropped below $0.220 before witnessing a resurgence from the bulls. Following this, there was a rebound, and Dogecoin managed to stabilize above the crucial $0.240 pivot point. Furthermore, the price surpassed the 23.6% Fibonacci retracement level of the downward movement from the $0.4336 peak to the $0.2020 low.

Although Dogecoin is currently consolidating above $0.240, it remains below the 50-day simple moving average and the $0.30 mark. If the bullish momentum continues, the price could push higher. Initial resistance levels to watch include the $0.2650 mark, where a bearish trend line is forming on the daily chart. The primary highlight is the $0.280 resistance level. If there is a decisive breakout above $0.280, it could pave the way for a substantial upward movement. Subsequent resistance levels to monitor are around $0.3180 and the 50-day simple moving average, in addition to the 50% Fibonacci retracement level from the recent price swings.

A breakthrough above the $0.3180 level and the 50-day moving average could trigger a further upwards surge towards $0.3450. Continued bullish momentum might propel DOGE price towards the $0.380 level in the near future.

On the flip side, Dogecoin could face rejection at the $0.2650 or $0.280 resistance points. If this scenario plays out, the price might experience renewed downside pressure. Immediate support is anticipated near $0.2420, with a crucial support level resting at $0.240. A break below $0.240 could lead to a test of the $0.220 level. The subsequent significant support zone is at $0.2020, and a breach of this level could potentially trigger further downward movement for Dogecoin.