Dogecoin Continues Its Upward Trend, But Encounters Resistance At $0.09

Dogecoin (DOGE) price has resumed an uptrend as it broke above the 21-day SMA.

Dogecoin price long-term forecast: bullish

Since January 18, the cryptocurrency value was trapped between the moving average lines. The altcoin fell to a low of $0.070 on January 18 as bulls bought the dips. The DOGE price then rose to a high of $0.08. It will be a challenge for buyers to resume the uptrend. If the resistance at $0.09 and $0.010 is broken, DOGE will rise to its previous high of $0.11. However, if the altcoin is not able to overcome the resistance at $0.09, it might continue its movement within the range between $0.08 and $0.09.

Dogecoin indicator display

Dogecoin is in the uptrend zone at level 61 of the Relative Strength Index for the period 14. If the price bars are above the moving average lines, the altcoin will rise. The horizontal slopes of the 50-day and 21-day SMAs indicate a trend. The 80% area of the daily stochastic is above the cryptocurrency value. This means that DOGE has reached the overbought zone.

Technical indicators

Key resistance levels — $0.12 and $0.14

Key support levels — $0.06 and $0.04

What is the next direction for Dogecoin?

Since January 14, DOGE has been moving between $0.08 and $0.09 on the 4-hour chart. At $0.09, the altcoin is currently retesting the resistance area. The cryptocurrency could fall due to the rejection of the recent high. As long as the current levels are not breached, the movement within the range will remain.

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.

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