Dogecoin is in a Deadlock as Buyers and Sellers Struggle above $0.14 Support

The price of Dogecoin (DOGE) has entered a downward correction after failing to hold above its moving averages. On February 8, the bulls broke through the moving averages but failed to maintain the bullish momentum above the recent high.

The altcoin encountered strong resistance at the high of $0.17. As a result, the price of DOGE fell to a low of $0.14. Bullish candlesticks are located at the support of $0.14, indicating a possible upward movement of the cryptocurrency. If the price of DOGE rises above the current support, buyers will try to regain the resistance at $0.17. On the other hand, if the bears break below the $0.14 support, the market will fall to the $0.10 low. At press time, DOGE/USD is trading at $0.1452. 

Dogecoin indicator reading

DOGE is at level 45 of the Relative Strength Index for the period 14. The altcoin is in the downtrend zone and below the midline 50. Dogecoin is below 20% of the daily stochastic. This indicates that the market has reached the oversold area of the market. Selling pressure is likely to ease as buyers emerge in the oversold region of the market. The cryptocurrency price bars are below the moving averages, indicating a possible decline. 

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?

On the 4-hour chart, Dogecoin is in a downward movement. The price indicator shows that the market has reached bearish exhaustion. Meanwhile, on February 8, the downtrend has seen a retracement candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 1.618 Fibonacci extension level or the $0.14 level. The price action shows that the altcoin has fallen and is retesting the level of the 1.618 Fibonacci extension.

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.