Dogecoin has begun to recover against the US Dollar, rising above the $0.120 mark. However, it is now encountering resistance near $0.1240 and may find it difficult to advance further.
The price started its recovery from $0.1175 and managed to climb above $0.120. Currently, it is trading below $0.1250 and the 100-hour simple moving average. A bearish trend line is forming with resistance at $0.1240 on the hourly chart for DOGE/USD. For the upward move to continue, the price needs to hold above $0.1240.
Dogecoin initiated this recovery from the $0.1175 zone, similar to Bitcoin and Ethereum. It broke through the $0.1180 and $0.120 resistance levels and saw a notable rise above the 50% Fibonacci retracement level of the decline from the $0.1277 high to the $0.1175 low. Yet, selling pressure is evident near $0.1240, reinforced by the bearish trend line on the chart.
At the moment, Dogecoin is trading below $0.1230 and the 100-hour simple moving average. If the recovery resumes, immediate resistance lies around $0.1240, which aligns with the trend line and the 61.8% Fibonacci retracement level of the recent drop. The first major resistance is near $0.1280, followed by $0.1320. A sustained close above $0.1320 could push the price toward $0.140, with further gains potentially reaching $0.1450 and then $0.150.
On the downside, if Dogecoin fails to break above $0.1240, it could resume its decline. Initial support is near $0.120, with the next key level at $0.1180. The main support sits at $0.1150. A break below this could lead to further losses, possibly toward $0.1080 or even $0.1050 in the near term.
Technical Indicators:
– Hourly MACD: Losing momentum in the bearish zone.
– Hourly RSI: Currently above the 50 level.
– Major Support Levels: $0.1180 and $0.1150.
– Major Resistance Levels: $0.1240 and $0.1280.
Frequently Asked Questions
Of course Here is a list of FAQs about the statement Dogecoin bulls made a push higher but quickly ran into strong resistance designed to be helpful for both new and experienced traders
Beginner Questions
1 What does it mean when bulls make a push higher
It means buyers were actively buying Dogecoin which increased demand and pushed its price up over a short period
2 What is strong resistance in crypto trading
Resistance is a specific price level where selling pressure becomes very strong Think of it as a price ceiling that the asset has struggled to break through in the past When the price hits it many people decide to sell to take profits which stops the upward move
3 So what happened to Dogecoin in simple terms
Dogecoins price started to rise as buyers jumped in but it quickly hit a point where a large number of sellers were waiting The selling overwhelmed the buying causing the price to stall or drop back down
4 Is hitting resistance a bad thing
Not necessarily Its a normal part of market cycles It shows where the market has previously decided an asset was overvalued A strong sustained break above resistance can be a very bullish signal
5 How can I see where resistance levels are
You can look at a chart with candlesticks Resistance is often found at previous price peaks where the price has reversed down multiple times Many traders use tools like horizontal lines to mark these levels
Intermediate Advanced Questions
6 What typically causes a strong resistance level to form
Resistance forms due to market psychology and memory Key causes include
A concentration of sell orders from traders who bought at a higher price and are waiting to break even
A previous major support level that once broken becomes new resistance
Large holders selling to take profits at a psychologically important round number
7 What are the signs that bulls are losing momentum at resistance
Look for
Long upper wicks on candlesticks The price shoots up but gets rejected and closes much lower
Decreasing volume The buying volume on the push higher is weaker than on previous rallies