Dogecoin Reaches Bearish Exhaustion as Bears Overwhelm Bulls

Dogecoin (DOGE) is trading at $0.08 as the bulls bought the dips.

On May 12, the cryptocurrency price fell to a low of $0.06 and then continued its uptrend. Currently, the uptrend has reached the high of $0.09 but has been rejected. Buyers have a difficult task ahead of them to bring DOGE to the previous highs as they are struggling with the resistances at $0.08 and $0.10. 

The DOGE price will rally to the high of $0.12 if the resistance levels are broken. On the other hand, if the resistance levels remain unbroken, the altcoin will be forced to move between the $0.06 and $0.09 price levels. However, the downtrend will resume if the bears break below the $0.06 support. DOGE is trading at $0.08 at press time.

Dogecoin indicator reading

Dogecoin is at level 26 on the Relative Strength Index for period 14, and the market has entered oversold territory. The cryptocurrency is deep in the oversold region. Further selling pressure is unlikely. The altcoin is below the 40% area of the daily stochastic. The market is in a bearish momentum. The 50-day line SMA and the 21-day line SMAs are bearish, indicating a downtrend.

Technical indicators:  

Major Resistance Levels - $0.18 and $0.16

Major Support Levels - $0.12 and $0.10

What is the next direction for Dogecoin?

Dogecoin's downturn has reached its bearish exhaustion. The altcoin has fallen to a low of $0.06 and has recovered. The current support is likely to hold as the market reaches the oversold zone. On the weekly chart, a candlestick has tested the 78.6% Fibonacci retracement level on April 4. The retracement suggests that DOGE will fall but reverse at the 1.272 Fibonacci extension level or $0.06.

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.