Dogecoin Reaches an Oversold Region, Resumes Uptrend above $0.19 Support

Nov 28, 2021 at 08:00 // News
Coin Idol
Dogecoin is holding above the current support

On November 26, the price of Dogecoin (DOGE) fell to its previous low of September 28. In other words, Dogecoin fell to the low of $0.19.

This $19 support level has not been breached since August 3. Today, the cryptocurrency is holding above the current support. And there are bullish candlesticks above the current support for a possible upside move. The cryptocurrency will move up if the current support holds. Dogecoin will break out of the downward correction if the price rises above $0.26. In the last action, the bulls broke the resistance at $0.26 after three attempts. On the other hand, if the bears break below the support at $0.19, the market will fall back to the low at $0.16. This was the historical price level on July 20.

Dogecoin indicator reading

DOGE/USD is at the 35 level of the Relative Strength Index for period 14, and the market is approaching oversold territory. The altcoin has a bearish crossover. The 21-day line is crossing below the 50-day moving average, which is a sell signal. Dogecoin is below the 20% area of the daily stochastic. This means that the market has reached the oversold area. The stochastic bands are sloping horizontally.


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?

DOGE/USD is in a downtrend as the price has reached the oversold region. Meanwhile, on October 31, the downtrend has seen a retraced candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 1.618 Fibonacci extension level or $0.19. From the price point of view, the altcoin has fallen and tested the Fibonacci 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.

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