Dogecoin Struggles Below $0.064 as Buyers Attempt to Revisit the $0.08 High

Dogecoin (DOGE) price is in a downward correction as buyers try to keep it above the 21-day line SMA. DOGE will rise above the 50-day line SMA if the price breaks above the 21-day line SMA.

Bullish momentum will rally to the upper resistance of $0.08 if buyers are successful. In the meantime, buyers are still struggling to break the 21-day SMA line. However, if the DOGE price turns down from the 21-day line SMA, it means that the altcoin is under selling pressure at the moving average line. There is a possibility that the cryptocurrency will fall back to the previous low at $0.05. The support at $0.05 has held since June 13.

Dogecoin indicator reading

The cryptocurrency is at level 48 of the Relative Strength Index for the period 14. It is still in the downward zone despite the upward correction. The price bars of the cryptocurrency are below the moving average lines, which indicates a further decline. The altcoin is below the 40% area of the daily stochastic. This indicates that the market is in a bearish momentum. 

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?

The downward movement of DOGE/USD has reached bearish exhaustion as the market is consolidating above the $0.05 support. There is also a long candle tail pointing to current support, indicating strong buying at lower price levels. On the weekly chart, a candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 1.272 Fibonacci extension level or $0.05. 

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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