Dogecoin Struggles to Reclaim $0.12 High as it Risks Further Decline

The price of Dogecoin (DOGE) is in a downward correction as the altcoin faces another rejection of its recent high. The bulls have failed to break above the moving averages, while the bears continue to sell at the resistance level.

If the bulls overcome the 21-day moving average, the altcoin will regain the crucial resistance at $0.12. At the same time, buyers will be attracted if the altcoin rises to the high of $0.17. However, if the altcoin turns away from the moving average, the cryptocurrency will fall to the low of $0.10. 

However, a break and close below the $0.10 support would mean the resumption of the downtrend. However, if the bulls defend the $0.10 support, DOGE/USD will be forced into a trading range between $0.10 and $0.12. In the meantime, the cryptocurrency price is fluctuating below the 21-day moving average line.

Dogecoin indicator reading

The altcoin is at level 44 of the Relative Strength Index for the period 14. The upward correction of Dogecoin is not enough to get out of the downtrend zone. The price of the cryptocurrency is below the moving averages, which indicates a possible decline of the cryptocurrency. DOGE price is above the 80% area of the daily stochastic. The current uptrend has reached bullish exhaustion. The market is likely to decline as the altcoin reaches the overbought zone.

Technical indicators:  

Major Resistance Levels - $0.80 and $0.85

Major Support Levels - $0.45 and $0.40

What is the next direction for Dogecoin?

Dogecoin is currently in an uptrend, but is encountering resistance at the high of $0.12. A rise to the previous high is possible if the current resistance is broken. Meanwhile, the March 17 uptrend has shown a candle body testing the 38.2% Fibonacci retracement level. The retracement suggests that DOGE will rise to the 2.618 Fibonacci Extension level or $0.13.

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.