Dogecoin Fluctuates Above $0.20 Support, Can Bears Resume Selling Pressure?

Today, the market has fallen to the low of $0.20 after retesting the high of 0.23. Further downside is possible to the lows of $0.165 or $0.18. The price of DOGE has already fallen into oversold territory. The altcoin will continue its upward movement if the market finds support above the low of $0.18. In the oversold region, buyers will push the altcoin to the previous high. Buyers need to keep DOGE above the high of $0.26 to resume the upward momentum.

Dogecoin indicator reading

The DOGE price is showing a bearish crossover. The 21-day line SMA crosses above the 50-day line SMA, which is a sell signal. Dogecoin is at level 36 on the Relative Strength Index for period 14, indicating that DOGE is in a downtrend and approaching oversold territory. Dogecoin is below the 20% range of the daily stochastic. The market has reached the oversold region.

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 price has fallen as it has reached the oversold region of the market. The selling pressure has reached bearish exhaustion. Meanwhile, a candlestick on the downtrend from August 26 has tested the 50% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 2.0 Fibonacci extension level or the $0.18 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.