Dogecoin Is In A Bind As It Recovers But Faces Rejection At $0.075 High

Jan 08, 2023 at 08:33 // Price
Coin Idol
DOGE/USD is still trading above the support level of $0.07

Dogecoin (DOGE) price has risen above the current support level of $0.07.

Dogecoin price long term forecast: bearish

On December 30, sellers pushed the cryptocurrency to a low of $0.06, but the bulls struck. The altcoin has risen above the crucial support level, but the moving average lines are stifling the bullish momentum.

In other words, the 21-day moving average line has slowed the uptrend. On the positive side, a price rise above the existing support level has the potential to break the moving average lines. The uptrend will continue to a high of $0.10. However, if the moving average lines are not broken, Dogecoin could fall back to its previous low of $0.06.

Dogecoin indicator display 

After the recent upward correction, Dogecoin's relative strength index for the 14 period is now at 42. The cryptocurrency is in a downtrend and could fall further. The price bars are below the moving average lines, which indicates that the altcoin will fall. The altcoin is gaining momentum above the daily stochastic level of 40.

DOGEUSD(Daily Chart) - January 7.23.jpg

Technical indicators: 

Key resistance levels - $0.12 and $0.14

Key support levels - $0.06 and $0.04 

What is the next direction for Dogecoin?

DOGE/USD is still trading above the support level of $0.07. Buyers are struggling to break through the resistance of the 21-day line SMA. If the cryptocurrency does not recover above the $0.07 support level, it could fall.

DOGEUSD(Daily Chart 2) -January 7.23.jpg

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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