After a prolonged downtrend, Dogecoin (DOGE) fell to a low of $0.19 as the bulls bought the dips. Today, the altcoin is trading above support at $0.24 as we write this article.
In the last price action, the altcoin rallied from the support at $0.19 and reached a high of $0.27. The DOGE price fell back below the resistance at $0.26 and continued its sideways movement. Today, the cryptocurrency is trading above the $0.24 support but below the $0.26 resistance.
DOGE /USD is also above the 21-day line SMA and below the 50-day line SMA. If Dogecoin is trapped between the moving averages, the altcoin will try to fluctuate between the $0.22 and $26 levels.
Today, the bulls will try to break the 50-day line SMA or the high at $0.26. If the buyers are successful, the altcoin will rise to the high of $0.32. However, if the buyers fail to break the recent high, there is a tendency for the price to resume its sideways movement. Dogecoin will be forced to fluctuate between the prices of $0.22 and $0.26 again.
There is a possibility of further upward movement as the altcoin is at the 55 level of the Relative Strength Index of period 14. DOGE will resume its uptrend if the bulls break out above the 50-day line SMA. The altcoin is above the 40% range of the daily stochastic. This indicates that Dogecoin is in a bullish momentum.
Key resistance levels - $0.80 and $0.85
Key support levels - $0.45 and $0.40
DOGE/USD is likely to continue its upward movement as it is already in the zone of uptrend. Since October 6, the altcoin has been trading below the $0.26 resistance before breaking above it. Meanwhile, the October 5 uptrend, whose last candlestick tested the 50% Fibonacci retracement level, has led to a decline. This retracement suggests that the altcoin will rise to the 2.0 Fibonacci Extension level or $0.32.
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.