Dogecoin is consolidating above the $0.160 support zone.
DOGE price is showing positive signs and could surge above the $0.20 resistance zone.
Dogecoin Price Eyes Bullish Reversal
After a steady decline, Dogecoin price found support near the $0.1300 zone. A low was formed at $0.1297 and the price is now recovering some losses. There was a move above the $0.1450 and $0.1650 resistance levels, like Bitcoin and Ethereum.
The bulls pushed the price above a major bearish trend line with resistance at $0.1600 on the daily chart. It opened the doors for a move above the $0.180 resistance and the 50-day simple moving average.
Dogecoin is now consolidating above the $0.180 level and the 50-day simple moving average. If the price stays above the 50-day simple moving average, it could start a fresh increase.
Immediate resistance on the upside sits near the $0.20 level. It is close to the 23.6% Fib retracement level of the downward wave from the $0.4336 swing high to the $0.1297 low. The first major resistance is near the $0.220 level.
A clear move above the $0.220 resistance could set the stage for a strong increase. The next key resistance sits near the $0.2650 zone. If there is a close above the $0.2650 zone, the price could accelerate higher toward $0.280.
The 50% Fib retracement level of the downward wave from the $0.4336 swing high to the $0.1297 low is also near the $0.2815 level. Any more gains might send DOGE price toward the $0.30 level in the coming days.
Another Drop In DOGE?
Conversely, Dogecoin might fail to surpass the $0.20 resistance or $0.220. In the stated case, the price could start another decline. Immediate support on the downside is near the $0.180 level. The first major support is near the $0.1650 level and the 50-day simple moving average.
A downside break and close below the $0.1650 support might spark heavy bearish moves. The next major support sits at the $0.150 level. If the bulls fail to defend the $0.150 support, the price might drop toward $0.130 or even $0.120 in the medium term.
Overall, DOGE is consolidating above $0.180 and $0.1650. To start a decent increase, DOGE must surpass the $0.20 and $0.220 resistance levels in the near term. If not, it could revisit the $0.1650 support.