Dogecoin Declines to $0.050 Support, Resumes Range-bound Movement Between $0.050 and $0.060

Dogecoin has been in a downward move after attaining a peak price of $0.0888. After rejection from the recent high, the coin fell to $0.0505 low as price corrected upward. The price correction was terminated at a high of $0.0649.

This compelled the altcoin to resume a downward move. Nonetheless, the selling pressure will persist as long as the cryptocurrency is in the bearish trend zone. On the upside, if price breaks above the resistance at $0.060 and the bullish momentum is sustained, the market will resume upside momentum.

However, if the bulls fail to break above the resistance, the downtrend will resume. The market is likely to fall to the low of $0.035. Meanwhile, the price action is characterized by small body indecisive candlesticks. The candlesticks describe that buyers and sellers are undecided about the direction of the market. Today, DOGE is trading at $0.0551 at the time of writing. Presently, the price is fluctuating between the levels of $0.050 and $0.060. 

Dogecoin indicator reading 

DOGE is below the 25 % range of the daily stochastic. This implies that the market has momentum. The RSI has indicated that the price is at level 47. That is, it is in the downtrend zone and below the centerline 50. The 21-day and 50-day SMAs are sloping southward indicating the downtrend. 

Technical indicators:  

Major Resistance Levels – $0.090 and $0.10

Major Support Levels – $0.040 and $0.030

What is the next direction for Dogecoin (DOGE)?

The Fibonacci tool has indicated a further downward movement of the DOGE. On February 15 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. It indicates that DOGE will fall to level 1.272 Fibonacci extensions and reverse. That is, the market may reverse at $0.0366.

Disclaimer. This analysis and forecast are the personal opinions of the author that 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.