After the recent collapse, Dogecoin (DOGE) price is likely to continue its downward movement. The bears have already crossed below the moving averages, indicating further downside.
If the market falls, sellers could target the previous low at $0.21 again. Nonetheless, the uptrend will resume if the altcoin finds support above $0.21.
However, if the support at $0.21 breaks, the market will fall to the low at $0.16. Meanwhile, the altcoin has been fluctuating between $0.23 and $26 for the past five days. If the altcoin holds above $0.23, the DOGE price will move between $0.23 and $0.26. The price of the cryptocurrency is unstable due to market fluctuations. Currently, the candlestick tails are pointing down, indicating strong buying pressure above the current support. Further downside is unlikely.
Dogecoin is at level 38 on the Relative Strength Index for period 14, indicating that DOGE is in the down zone and approaching the oversold area of the market. The altcoin is below the 50% area of the daily stochastic. This indicates that altcoin is in a bearish momentum.
Major Resistance Levels - $0.80 and $0.85
Major Support Levels - $0.45 and $0.40
DOGE/USD is in a downtrend. The cryptocurrency will continue to fall if the price drops below the current support at $0.23. Meanwhile, the uptrend from September 10 has experienced a candlestick retracement that tested the 78.6% Fibonacci retracement level. This retracement suggests that the altcoin will fall to the 1.272 Fibonacci extension level or the $0.22 high.
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.