Dogecoin Consolidates above $0.19 Support as Bears Threaten to Short

Dec 05, 2021 at 06:00 // News
Author
Coin Idol
Bears are trying to break the current support at $0.19

Dogecoin (DOGE) continues its downtrend after the price fell below the moving averages. Also, the DOGE price has fallen below the previous low of $0.196 as the altcoin hits the low of $0.190.

At the low of $0.190, the market has fallen into the oversold territory of the market. If the oversold condition continues, selling pressure will continue on the downside. Today, the bears are trying to break the current support at $0.19. The cryptocurrency could fall further to the low of $0.16. Meanwhile, DOGE/USD is trading at $0.191 at the time of writing.

Dogecoin indicator reading

DOGE/USD is at level 31 on the Relative Strength Index for period 14, and the cryptocurrency is on the verge of entering oversold territory in the market. The current downturn may be reaching bearish exhaustion. Daily stochastics indicate that Dogecoin is below the 20% area of daily stochastics. The market is now in the oversold region.

DOGEUSD(_Daily_Chart)_-_NOV._4.png

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 has continued to fall as the market has reached oversold territory. Meanwhile, on November 6, the downtrend has seen a retreating candlestick testing the 50% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 2.0 Fibonacci Extension level or $0.19. The price action shows that the altcoin has fallen and is testing the Fibonacci extension.

DOGEUSD(Daily_Chart_2)_-_NOV._4.png

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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