Dogecoin Breaks the High of $0.19 Twice and Continues Its Downward Correction

Jan 02, 2022 at 07:32 // Price
Coin Idol

Dogecoin (DOGE) price has resumed its downward correction as buyers fail to sustain bullish momentum above $0.19 resistance. Buyers made two unsuccessful attempts to break the recent high but were beaten back.

Dogecoin (DOGE) Price Long Term Forecast: Bearish 

On December 14, Dogecoin rose to $0.22 but closed below the $0.19 price level. The cryptocurrency gradually fell to a low of $0.16. The same price action repeated on December 25, when the altcoin fell back to the previous low. Today, the altcoin is moving above the support of $0.17. The current price level is stable as buyers resume the uptrend. Buyers need to push DOGE up above $0.22 to get out of a downward correction.

DOGEUSD(Daily Chart) - JANUARY 1.png

Dogecoin (DOGE) Indicator Reading 

First, the cryptocurrency's price bars are below the 21-day line and the 50-day moving average line, indicating a possible downside move. Moreover, DOGE is at the 42 level of the Relative Strength Index for the 14 period, indicating that the altcoin is in a downtrend and capable of further downward movement. The cryptocurrency value is above the 25% area of the daily stochastic. The bullish momentum is unstable and the price of DOGE is consolidating above the current support.

Technical Indicators: 

Key resistance levels - $0.80 and $0.85
Key support levels - $0.45 and $0.40

DOGEUSD( 4 Hour Chart) - JANUARY 1.png

What is the next direction for Dogecoin (DOGE)?

DOGE /USD is in a downward correction and at the bottom of the chart. The altcoin could go down as it is below the moving averages. Meanwhile, on November 28, the downtrend; a retracement candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that DOGE will fall but reverse at the 1.272 Fibonacci extension level or $0.16.

Disclaimer. This analysis and forecast are the personal opinions of the author are not constitute a recommendation to buy or sell cryptocurrencies and should not be considered an endorsement of Coin Idol. Readers should do their own research before investing funds.

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