Dogecoin (DOGE) price has been in a downtrend since October 5 as it broke below the moving average lines. The cryptocurrency fell from a high of $0.066 to a low of $0.055 on October 13.
On October 13, the bulls bought the dips as the altcoin rose to $0.059. The candle has a long tail, which indicates that there is strong buying pressure at lower price levels. Today, the cryptocurrency is trading above the $0.058 support, but if the current support holds, DOGE is likely to rise again. A price rally will push the altcoin above the moving average lines. DOGE rises as price consolidates above current support.
Dogecoin indicator reading
The recent decline has resulted in DOGE reaching the level 43 of the Relative Strength Index for the period 14. The cryptocurrency’s price bars have fallen below the moving average lines, making it vulnerable to a decline. It is in a bullish momentum as it is above the 25% area of the daily stochastic. The price momentum is unstable.
Technical indicators:
Major Resistance Levels – $0.08 and $0.10
Major Support Levels – $0.07 and $0.05
What is the next direction for Dogecoin?
Dogecoin is in the downtrend zone and could continue to fall to the previous lows. On September 6, DOGE made a downward correction to the upside and a candlestick tested the 61.8% Fibonacci retracement level. The corrections suggest that DOGE will fall to the 1.618 Fibonacci extension level or the $0.049 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 in funds.
Source: https://coinidol.com/dogecoin-rally-0-070/