Dogecoin Breaches More Demand Zones as Sellers Threaten To Short Further

Dogecoin (DOGE) has fallen and it is trading above the $0.3070 support at the time of writing. The recent price fall has erased the previous bullish gains of the upward correction.

Buyers have earlier pushed the crypto to a high of $0.44 but the bullish momentum was terminated. DOGE fell to $0.30 low and it is capable of further downward move. The market may decline to the low of $0.28 or $0.25 if the bears break below the $0.30 support level. If the bears continue their bearish run, the downtrend will resume below the $0.30 support.

Dogecoin indicator reading 

The altcoin has fallen to level 42 of the Relative Strength Index period 14. It indicates that the crypto is in the downtrend zone and capable of falling on the downside. DOGE is below the 20% range of the daily stochastic. It indicates that the altcoin is now in the oversold region of the market. Buyers are likely to emerge as Dogecoin reaches bearish exhaustion. 

Technical indicators:  

Major Resistance Levels – $0.80 and $0.85

Major Support Levels – $0.30 and $0.25  

What is the next direction for Dogecoin?

Dogecoin is in a downward move. The bullish gains of the crypto have been erased. The Fibonacci tool has indicated the extent of the downward move. Meanwhile, on June 4 downtrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. This retracement indicates that the altcoin will fall to level 1.618 Fibonacci extension or level $0.2964. 

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.