Dogecoin Surges Ahead as Bulls Overrun Bears

Jan 16, 2022 at 08:15 // Price
Coin Idol
Dogecoin is out of the downward correction

Dogecoin (DOGE) has risen above the moving averages and reached the high of $0.19. This is a sign that the selling pressure has ended.

In other words, Dogecoin is out of the downward correction. The cryptocurrency tends to rise above the moving averages. The current uptrend is likely to encounter another resistance at the high of $0.22. For the current uptrend to continue, buyers will need to overcome the resistance at $0.22. DOGE/USD will rally to $0.30 if buyers manage to overcome the resistance at $0.22. In the meantime, the altcoin is moving below the $0.20 high.

Dogecoin indicator reading

DOGE is at level 61 of the Relative Strength Index for period 14, indicating that the cryptocurrency asset is now in the bullish trend zone. The altcoin is capable of another uptrend. The cryptocurrency price will continue to rise as long as the price bars are above the moving averages. The moving averages of the 21-day line and the 50-day line are sloping south, indicating the previous trend. The cryptocurrency price is above the 40% area of the daily stochastic. Stochastic bands are trending sideways, indicating price volatility.


Technical indicators:  

Major Resistance Levels - $0.80 and $0.85

Major Support Levels - $0.45 and $0.40

What is the next direction for Dogecoin?

Dogecoin is in an upward movement. The uptrend encounters rejection at $0.22 while it fluctuates below the $0.20 price level. The uptrend will resume when the resistance is broken. Meanwhile, the uptrend from January 14 has a candle body testing the 38.2% Fibonacci retracement level. The retracement suggests that DOGE will rise to the 2.618 Fibonacci Extension level or $0.300.


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.

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