On November 26, the price of Dogecoin (DOGE) fell to its previous low of September 28. In other words, Dogecoin fell to the low of $0.19.
This $19 support level has not been breached since August 3. Today, the cryptocurrency is holding above the current support. And there are bullish candlesticks above the current support for a possible upside move. The cryptocurrency will move up if the current support holds. Dogecoin will break out of the downward correction if the price rises above $0.26. In the last action, the bulls broke the resistance at $0.26 after three attempts. On the other hand, if the bears break below the support at $0.19, the market will fall back to the low at $0.16. This was the historical price level on July 20.
Dogecoin indicator reading
DOGE/USD is at the 35 level of the Relative Strength Index for period 14, and the market is approaching oversold territory. The altcoin has a bearish crossover. The 21-day line is crossing below the 50-day moving average, which is a sell signal. Dogecoin is below the 20% area of the daily stochastic. This means that the market has reached the oversold area. The stochastic bands are sloping horizontally.
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?
DOGE/USD is in a downtrend as the price has reached the oversold region. Meanwhile, on October 31, the downtrend has seen a retraced candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 1.618 Fibonacci extension level or $0.19. From the price point of view, the altcoin has fallen and tested the Fibonacci 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.
Source: Read Full Article