The price of Dogecoin (DOGE) has broken the 21-day line SMA, signalling the resumption of an upward movement. Dogecoin will come out of the downward correction if buyers push the altcoin above the 50-day line SMA. In the same way, the cryptocurrency will rise to reach the previous highs.
Today DOGE is trading at $0.068 and further upward movement is doubtful. On June 21, the bulls failed to overcome the resistance at $0.07. Moreover, DOGE/USD is trading in the overbought zone of the market. On the upside, a rebound above the $0.068 support could catapult the cryptocurrency to the $0.08 high. On the downside, DOGE could decline if it is rejected at the recent high. It could fall to the previous low of $0.05.
Dogecoin indicator reading
Dogecoin is at level 48 of the Relative Strength Index for period 14. The coin is in the downtrend area while it is approaching the uptrend area. DOGE is above the 21-day line SMA, but below the 50-day line SMA, indicating a possible movement within a trading range. The moving averages are sloping south, indicating a downtrend.
Technical indicators:
Major Resistance Levels – $0.18 and $0.16
Major Support Levels – $0.12 and $0.10
What is the next direction for Dogecoin?
Dogecoin has resumed its bullish momentum but faces rejection in the overbought zone. The uptrend will continue if the price breaks above the resistance at $0.0705. Meanwhile, on June 19 uptrend, a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that DOGE will rise to the level 1.618 Fibonacci extension or $0.070.
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-rebounds-0-05/