Dogecoin Holds Above $0.12 Support, Upward Movement Likely

The price of Dogecoin (DOGE) is in a downward correction as the cryptocurrency has regained the previous low at $0.12.

Dogecoin (DOGE) price long-term forecast: bearish

On February 24, the bears broke the previous low, but the bulls bought the dips. The cryptocurrency price is trading above the previous low. The February 24 candlestick shows a protruding long tail. The long tail of the candlestick indicates that there is strong buying pressure at the current support. In other words, support at $0.12 is likely to hold. Moreover, Dogecoin has fallen into the oversold zone of the market. DOGE/USD is trading at $0.1271 at the time of writing.

Dogecoin (DOGE) indicator reading 

DOGE is at level 38 on the Relative Strength Index for period 14. Dogecoin has previously fallen into oversold territory and pulled back. The cryptocurrency is in the downtrend zone and below the midline 50. DOGE price bars are below the moving averages, indicating a possible decline. The altcoin is above the 25% area of the daily stochastic. The market has resumed its bullish momentum.

Technical Indicators: 

Key resistance levels - $0.80 and $0.85

Key support levels - $0.45 and $0.40

What is the next direction for Dogecoin (DOGE)?

Dogecoin is moving above the previous low at $0.12. Bears failed to break the previous low. Meanwhile, the Feb. 13 downtrend has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 1.272 Fibonacci extension level or the $0.13 level. The price action shows that the altcoin has fallen and could rebound at the $0.12 level.

Disclaimer. This analysis and forecast are the personal opinions of the author 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.