Dogecoin Makes Upward Correction to $0.44 as Selling Pressure Resumes

Jun 06, 2021 at 07:24 // News
Coin Idol
In the current price level, buyers could not sustain the bullish momentum above the recent high

Dogecoin has been falling for the past three days after rejection from the $0.44 high. The $0.44 high was the new price level after the recent downtrend.

In the previous trend, the bears pushed DOGE to the low of $0.25 as bulls bought the dips. In the current price level, buyers could not sustain the bullish momentum above the recent high. After retesting the resistance thrice, DOGE fell to the low above $0.36. There was another pullback to retest the $0.39 high. The implication is that the selling pressure will continue on the downside. When the price breaks the current support, a revisit to the previous low at $0.30 is likely.

Dogecoin indicator reading 

The altcoin is at level 49 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The 21-day and 50-day SMAs are sloping horizontally indicating the current fluctuation of price. DOGE is above the 25% range of the daily stochastic. This indicates that the market has bullish momentum.  


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 the prospect of an upward move. Meanwhile, on June 2 uptrend; a retraced candle body tested the 38.2 % Fibonacci retracement level. This retracement indicates that the altcoin will rise to level 2.618 Fibonacci extension or level $0.662. 


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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