Dogecoin Is in a Downtrend as It Falls Marginally To $0.06 Low

The price of Dogecoin (DOGE) is in a downward correction, but has resumed selling pressure. The cryptocurrency is declining to regain the previous low at $0.06. The recent decline is a rejection of the 21-day line SMA.

On May 31, the bulls failed to keep the price above the 21-day line SMA, which led to a downward movement. The upward movement is now limited by the 21-day line SMA. In the meantime, Dogecoin will regain the previous low at $0.06 if the bears fall below the current support. However, if the current support holds and DOGE rises again, the bulls will try to break the 21-day line SMA. This will cause DOGE to rally to the 50-day line SMA.

Dogecoin indicator reading 

Dogecoin is at level 34 of the Relative Strength Index for period 14. The altcoin is in a downtrend as it approaches the previous low. DOGE Price bars are below the moving averages, which makes them vulnerable to a decline. The 21-day line SMA and the 50-day line SMA are sloping south, indicating a downtrend. The altcoin is above the 25% area of the daily stochastic. The altcoin is in a bullish momentum. 

Technical Indicators: 

Key resistance levels - $0.18 and $0.16

Key support levels - $0.12 and $0.10

What is the next direction for Dogecoin?

Dogecoin is fluctuating above the support level of $0.07. The altcoin will continue its movement within the range if the current support holds. Meanwhile, at the June 1 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that DOGE will fall to the Fibonacci extension level of 1.618 or $0.07. 

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.