Dogecoin rally faces massive weekly resistance: $ 0.005 as key level
Dogecoin rebounded from the $ 0.0022 support area this week, gaining over 100% against the US dollar. On the weekly chart, DOGE is currently facing strong resistance near $ 0.0500.
The Dogecoin rate has risen sharply in recent sessions, recovering more than 100% against the US dollar.
The price climbed above the resistance at $ 0.0500, but failed to stabilize and suffered a setback.
Previously, the DOGE / USDT pair weekly chart breached above a subsequent bearish trendline with resistance close to $ 0.0025.
Dogecoin rally faces a major hurdle near $ 0.005
Over the past few days, Dogecoin has been a strong support base at $ 0.0020. DOGE broke some key hurdles near the $ 0.00250 level, sparking a strong rally.
There was a breakthrough on the weekly chart above a connecting bearish trendline with resistance close to $ 0.0025. This opened the doors for a sharp rise and the trading couple recovered more than 100%.
Doge broke the $ 0.0040 resistance and settled well above the 100-week simple moving average. It even rose above the $ 0.00450 and $ 0.0050 resistance levels (outperforming other major cryptocurrencies, including Bitcoin and Ethereum ).
A new monthly high is made at $ 0.0055 and the price is currently clouding profits. The bulls are facing strong resistance at $ 0.0050.
If there is a weekly break above the $ 0.0050 resistance level, there is a chance of a sustained upward move. The next major resistance is seen near the $ 0.0055 and $ 0.0058 levels, followed by $ 0.0062.
Should the DOGE move down, it will likely find support near the $ 0.0040 level. The next big support is close to the $ 0.0034 level (the most recent breakout zone).
Further losses could put pressure on the bulls and the price could fall back towards the $ 0.0025 level in the coming days.
Technical indicators to watch
The weekly RSI rises to near 85 and could show the bulls are running out of air. Key support regions to watch for are $ 0.0040, $ 0.0034 and $ 0.0025. As previously mentioned, the main resistance is currently $ 0.0050 and $ 0.0055.
DOGE should be treated the same way you would treat Monopoly money. It’s fun to have a lot and toss around all willy-nilly, but you would never “invest” in Monopoly money. If you get it for me, have fun with it. Outside of that, don’t spend a cent on DOGE.