Dogecoin Retraces above $0.08 as It Is Set for a Price Rebound

The price of Dogecoin (DOGE) is in a downtrend after the altcoin fell to a low of $0.06 on May 12. The cryptocurrency lost its crucial support at $0.10 when it fell to the low of $0.06. The altcoin took an upward correction to the high of $0.09, but was pushed back. DOGE has declined and is consolidating above the $0.08 support.

Over the past week, DOGE has held relatively steady above $0.08 support. If DOGE rises again, it will rally above $0.10. The bullish momentum will likely extend to the $0.13 high. Similarly, the altcoin will regain the previous low at $0.06 if the current support is broken. DOGE/USD is fluctuating above the $0.08 support.

Dogecoin indicator reading

Dogecoin is at level 33 on the Relative Strength Index for period 14. Buyers are emerging in the oversold region as the cryptocurrency rallies. The 50-day line SMA and the 21-day line SMA are down, indicating the downtrend. The 21-day line SMA is the resistance line for the price. The altcoin is above the 25% area of the daily stochastic. The bullish momentum is volatile.

Technical indicators:  

Major Resistance Levels - $0.18 and $0.16

Major Support Levels - $0.12 and $0.10

What is the next direction for Dogecoin?

Dogecoin is fluctuating above the $0.08 support level after the recent retracement. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that DOGE will fall, but will reverse at the level of 1.272 Fibonacci extension or $0.06. The price action shows that the market is holding above the $0.08 support.

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.