- Dogecoin prints three-day winning streak as bulls jostle with key resistance.
- DOGE hits 10-day high but 50-Day SMA, former support confluence join neutral RSI to challenge further upside.
- DOGE/USD bulls eye 200-Day SMA breakout to retake control, sellers await monthly low for re-entry.
Dogecoin (DOGE/USD) trades slightly higher near $0.2020 during Wednesday’s European session, extending its two-day winning streak to the highest level since May 30.
Buyers confirm Tuesday’s break above the short-term Simple Moving Average (SMA) on the 4-hour chart, despite neutral 14-day Relative Strength Index (RSI) and mixed Moving Average Convergence Divergence (MACD) signals that challenge further gains. That said, DOGE remains near key resistance levels, where a strong breakout could boost buyer confidence.
DOGE/USD: Daily chart portrays long, bumpy road for bulls
Source: Tradingview
The DOGE/USD pair justifies its near 50 RSI and sluggish MACD signals, as it struggles to recover from last week’s break below a month-old ascending trend line (now resistance) and the 50-day SMA breakdown, both converging around $0.2020-25 by the press time.
Even if DOGE surpasses the immediate $0.2025 hurdle, buyers face further challenges from a mid-January downward-sloping resistance line near $0.2200 and the 200-day SMA around $0.2590, quickly followed by the $0.2600 threshold, before gaining control.
On the contrary, a Dogecoin pullback beyond the monthly low of $0.1680 seems elusive. Below this, May’s low at $0.1640 and March’s low of $0.1430 could test sellers before they target the April-marked yearly low of $0.1300.
Source: Tradingview
On the four-hour chart, Dogecoin buyers are defended by a clear break above the 50-bar SMA, coupled with an upbeat 14-day RSI and bullish MACD signals. However, further upside for DOGE is challenged by a month-old horizontal resistance area and the 200-bar SMA, near $0.2090-$0.2130.
Should Dogecoin break past this strong upside hurdle, bulls could target the $0.2300 threshold and May’s peak of around $0.2600 before aiming for the daily chart’s resistance levels.
Alternatively, the 50-bar SMA at $0.1880, followed by the monthly low near $0.1680, will limit short-term DOGE/USD downside before reaching the daily chart’s support levels.
Overall, Dogecoin is likely to see short-term upward momentum, but reversing its month-old bearish trend appears difficult.
