Dogecoin May Hold Above $0.15 as It Reaches the Oversold Region

Following the rejection on June 25, Dogecoin (DOGE) has continued to fall as the altcoin approaches the previous low at $0.15.

On June 25 rejection, DOGE reached a high of $0.25 but was repelled. The overwhelming selling pressure pushed altcoin to the previous low. The market has fallen to the low of $0.17 at the time of writing.

However, the bears may try to break the previous low. On the last three occasions, the bulls have successfully defended the previous low. On each occasion, the market will resume the upward correction. Meanwhile, there are bullish candlesticks above the previous low. The cryptocurrency will resume the upward correction if it bounces above the current support. Conversely, if the bears break the current support, the market will drop to a low of $0.10.

Dogecoin indicator reading

Dogecoin has fallen to the 29 level on the Relative Strength Index for period 14. It indicates that DOGE is now in the oversold region of the market. The implication is that selling pressure is likely to ease. Second, we should expect the emergence of buyers in the oversold region. Also, DOGE is below the 20% area of the daily stochastic. This indicates that the altcoin is oversold. The 50-day and the 21-day SMA are sloping south, indicating a downtrend.

Technical indicators:

Major Resistance Levels - $0.80 and $0.85

Major Support Levels - $0.30 and $0.25

What is the next direction for Dogecoin?

Dogecoin is in a downtrend. Selling pressure is consistent as price retests the $0.22 and $0.20 highs. Meanwhile, on the July 9 downtrend; a retraced candlestick body tested the 50% Fibonacci retracement level. The retracement indicates that DOGE will fall to the 2.0 Fibonacci extension level or the $0.15 level.

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.