Dogecoin Makes Positive Moves as Underlying Strength Grows

Feb 06, 2022 at 09:05 // Price

Buyers are driving the DOGE price to retest the resistance at $0.15

The price of Dogecoin (DOGE) is trading in a narrow range at the bottom of the chart.


On January 22, the downtrend eased as the altcoin fell to a low of $0.12. Dogecoin is now in a sideways movement, fluctuating in a tight range between the prices of $0.13 and $0.15. Today, buyers are driving the DOGE price to retest the resistance at $0.15. 


On January 26, buyers retested the $0.15 high and were pushed back as the market fell to a low of $0.138. Today, the bulls are retesting resistance at $0.15 in an attempt to break above it. The upside move is doubtful as the market has reached the overbought zone. A rise above the support at $0.13 will overcome the first resistance. If the bulls manage to overcome the resistance at $0.15, Dogecoin will reach another high at $0.21.


Dogecoin indicator reading


DOGE is at level 49 of the Relative Strength Index for the period 14. The cryptocurrency has been performing positively lately. The RSI indicates that there is a balance between supply and demand. The cryptocurrency price has risen above the 21-day moving average line, but is below the 50-day moving average line. It is likely that the altcoin fluctuates between the moving averages. Dogecoin is above 80% of the daily stochastic. The cryptocurrency has reached the overbought zone of the market. It is likely to go down.


DOGEUSD(Daily_Chart)_-_FEB._5.png


Technical indicators:  


Major Resistance Levels – $0.80 and $0.85



Major Support Levels – $0.45 and $0.40 


What is the next direction for Dogecoin?


The cryptocurrency will continue to move between the $0.13 and $0.15 levels. It is likely that the cryptocurrency will resume its uptrend if the buyers overcome the resistance at the recent high. Otherwise, the downward correction will continue.


DOGEUSD(4_Hour_Chart)_-_FEB._5.png


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.

Source: https://coinidol.com/dogecoin-makes-positive-moves/