Since April 17, Dogecoin (DOGE) price has been having an impressive bullish run. The altcoin rallied from the low of $0.15 to a high of $0.45. Nevertheless, DOGE has reversed direction after reaching the high of $0.45.
On April 16, buyers pushed Dogecoin to $0.45 high but later fell below $0.40. The bulls retested the $0.40 high and were repelled.
After the retest, a bearish double top pattern was formed. This indicates that Dogecoin will luckily resume a downward move after the rejection at $0.40. On the downside, the DOGE price has fallen from the high of $0.45 to the low of $0.30. Further downside is possible if price breaks below the $0.30 support. The market will decline to $0.15 low.
The altcoin is falling and if price falls and closes below the bullish trend line, the uptrend is likely to be terminated. The Relative Strength Index period 14 has fallen from level 96 to level 79. This implies that the altcoin is still in the overbought region. DOGE/USD has no room to rally on the upside as sellers emerge in the overbought region.
Major Resistance Levels – $0.45 and $0.50
Major Support Levels – $0.25 and $0.20
Dogecoin is falling after the rejection at $0.45 high. On the 1-hour chart, the DOGE price has broken the 21-day SMA and approaching the 50-day SMA. A break below the SMAs will mean further downside. On April 16 downtrend; a retraced candle body tested the 38.2 % Fibonacci retracement level. This implies that price will fall to level 2.618 Fibonacci extension or the low of $0.0245.
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.