Dogecoin is in a Tight Range but Struggles below $0.22 Resistance

Oct 03, 2021 at 08:33 // News
Coin Idol
Dogecoin may resume its downward correction

The Dogecoin (DOGE) price has continued its downward correction despite most cryptocurrencies trading in the bullish trend zone. Today, the DOGE price faces rejection at the high of $0.22.

The rejection indicates further downside for the altcoin. The altcoin is likely to fall further to $0.17 if the bears break the previous low at $0.19. 

Altcoin could resume its downward correction between $0.19 and $0.21. The altcoin will perform if the narrow range is broken. It is a difficult task for the buyers to take the altcoin to the previous highs. The bulls need to push the altcoin above the high at $0.28. Meanwhile, DOGE /USD is trading at $0.21 at the time of writing.

Dogecoin indicator reading

DOGE/USD has a bearish crossover. The 21-day line SMA crosses below the 50-day line SMA, which is a sell signal. The altcoin is at the 45 level of the Relative Strength Index of period 14. This indicates that DOGE is in the downtrend zone and can fall downwards. The altcoin is below the 40% area of the daily stochastic. This indicates that the altcoin is in a bearish momentum.


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 already in a downtrend. The cryptocurrency's downtrend has reached its bearish exhaustion. Meanwhile, the downtrend tested the 78.6% Fibonacci retracement level located in the last retracement candle on September 7. This retracement suggests that the altcoin will fall to the Fibonacci extension level of 1.272 or $0.18.


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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