After the recent decline, the price of Dogecoin (DOGE) is trading between the two moving averages. It is above the 50-day line but below the 21-day moving averages.
Today, the price movement has two directions. If the price breaks below the 50-day moving averages line, Dogecoin could fall to a low of $20.
However, if buyers push the altcoin above the 21-day moving averages line, the cryptocurrency will resume its upward movement. DOGE/USD will rise to break the high at $0.30 and retest the upper resistance at $0.34. The altcoin will rally to the high of $42 if the upper resistance is broken. However, the high at $0.34 has not been breached since August 15. Meanwhile, the price of DOGE is still fluctuating between the moving averages at the time of writing.
Dogecoin indicator reading
The DOGE price has fallen to level 47 on the Relative Strength Index for period 14. This indicates that the cryptocurrency price has fallen into the downtrend zone. The altcoin may be under selling pressure. The moving averages are sloping horizontally, indicating the trend. The cryptocurrency has fallen below the 20% area of the daily stochastic while the price is hitting the low of $25. This also means that the market has reached the oversold area. The selling pressure has reached bearish exhaustion.
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 falls below the moving averages. The market is falling back to the previous low of $0.24. Meanwhile, on November 10, the downtrend has seen a retraced candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that DOGE will fall to the Fibonacci extension level of 1.618 or $0.20.
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