For the past two days, the price of Dogecoin (DOGE) has been on a downward trend. Today DOGE dropped to a low of $0.29.
Earlier, the market had reached the high of $0.34 but the uptrend could not be maintained as the market was in the overbought zone. DOGE would have risen to $0.35 had the current resistance been broken.
The cryptocurrency is likely to fall as it faces rejection at the high of $0.305. The fallen crypto is struggling to hold above the 21-day line SMA. If the cryptocurrency holds above the moving averages, it would be a sign of resumption of the uptrend. Bulls could retarget the previous high at $0.34. On the other hand, if the price of DOGE falls below the moving averages, it would add to the current selling pressure. The altcoin will continue to fall to the low of $0.26.
Dogecoin indicator reading
The DOGE/USD price is at the 55 level of the Relative Strength Index for period 14. DOGE is in the uptrend zone and above the midline 50. It is below the 80% range of the daily stochastic. This indicates that the market is in a bearish momentum. The 21-day line SMA and the 50-day line SMA are up, indicating an uptrend.
Major Resistance Levels – $0.80 and $0.85
Major Support Levels – $0.30 and $0.25
What is the next direction for Dogecoin?
On the 4-hour chart, the altcoin is in a downtrend. The current price decline is holding support above the 21-day line SMA. The downtrend will continue if the support above the 21-day line SMA is broken. Meanwhile, the downtrend has shown a candlestick on September 3, testing the 50% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 2.0 Fibonacci extension level or the $0.26 level.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
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