Dogecoin Bounces Above $0.08 Support After Rejecting Recent High

Dogecoin (DOGE) price has risen above the $0.07 support level and above the moving average lines.

Dogecoin price long term forecast: bullish

Dogecoin price has been capped below the moving average lines since the December 19 price drop. Moreover, the cryptocurrency price had been consolidating above the $0.07 support level before the price spike. On the positive side, the price of DOGE is rising and will soon reach the previous high of $0.11. If the resistance at $0.11 is broken, the price could rise to $0.16. Nevertheless, the altcoin has reached the overbought zone of the market. The current uptrend could weaken. If Dogecoin fails to break through the $0.11 high, it will be forced to trade in a range. The altcoin will return to the market between $0.07 and $0.11.

Dogecoin indicator display 

At a level of 65 on the Relative Strength Index for period 14, Dogecoin is in an uptrend. DOGE is rising and could continue to do so. The fact that the price bars are higher than the moving average lines suggests that the altcoin could be rising. Dogecoin is experiencing bearish momentum below the daily stochastic threshold of 80. As the altcoin approaches the overbought area of the market, it is falling.

Technical indicators

Key resistance levels - $0.12 and $0.14

Key support levels - $0.06 and $0.04 

What is the next direction for Dogecoin?

Dogecoin reaches a high of $0.092 while still trending up. The altcoin is falling because the price indicator points to an overbought situation for the asset. If the altcoin bounces back above the moving average lines, the upward momentum will increase again. If the price falls below the moving average lines, the decline will resume.

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 in funds.