Dogecoin (DOGE) is in a downward correction as the altcoin falls below moving averages. In the last five days, the cryptocurrency has traded below the moving averages due to the rejection on May 27 and May 31.
Dogecoin is trading at $0.08 at the time of writing. Since May 12, the altcoin has traded in a range between $0.07 and $0.09. The current range was invalidated by the decline of DOGE to the low of $0.08. If DOGE continues its slide, it will hit the current support at $0.07 again. The current support has held since May 26. A rise above the $0.07 support will catapult the altcoin above the 21-day moving average. However, the downtrend will resume if the bears fall below the current support.
Dogecoin is at level 39 of the Relative Strength Index for the period 14. It is in the downtrend zone and continues its downward movement. The price bars of the cryptocurrency are below the moving average, which indicates that the coin will continue its downward movement. The moving averages are tilted to the south, indicating the downtrend. The 21-day line SMA acts as a resistance line for the price bars.
Major Resistance Levels – $0.18 and $0.16
Major Support Levels – $0.12 and $0.10
Dogecoin is fluctuating above the support level of $0.07. The price indicator has indicated a possible downward movement of the coin. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that DOGE will fall, but will reverse at the level of 1.272 Fibonacci extension or $0.05.
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.