Dogecoin (DOGE) is in a downward correction as the price reaches oversold territory. The cryptocurrency is trading marginally after retreating from the oversold region at $0.12.
At press time, the market has reached a high of $0.14. Since the December 4 dip, Dogecoin has retested the $0.12 low as bulls buy the dips.
The price action showed a long candle tail, indicating that there is strong buying pressure at the lower price levels. On the upside on January 26, the bulls tried to push the altcoin above the $0.15 high but were beaten back. The cryptocurrency is trading at the bottom of the chart and in a narrow range between the $0.13 and $0.15 price levels.
The cryptocurrency is rising as it reaches level 38 of the Relative Strength Index of period 14. The altcoin was previously in the oversold region of the market. This indicates that the price of DOGE is in the downtrend zone and below the centre line 50. Dogecoin is in a bullish momentum above the 25% range of the daily stochastic. The 21-day line SMA and the 50-day line SMA are sloping south, indicating a downtrend.
Key Resistance Zones: $0.50, $0.60, $0.70
Key Support Zones: $0.30, $0.20, $0.10
Dogecoin price is in a downtrend, but the market has reached bearish exhaustion. Meanwhile, on December 14, the downtrend has seen a retracement candlestick testing the 78.6% Fibonacci retracement level. This retracement suggests that DOGE will fall to the 1.272 Fibonacci Extension level or $0.11.
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 CoinIdol. Readers should do their research before investing funds.