Dogecoin Fluctuates in a Range and Encounters Strong Rejection at $0.19

Jan 08, 2022 at 14:12 // Price
Coin Idol

The Dogecoin (DOGE) price is in a downward correction as the price falls below the moving averages.

Dogecoin (DOGE) Price Long-Term Forecast: Bearish

Today, the DOGE price is fluctuating above support at $0.15, but is trading in a range between $0.15 and $0.19. After the December 4 price collapse, bulls bought the dips as the price corrected to the high at $0.19. 

On December 13, the price of DOGE fell to a low of $0.15 and recovered. The cryptocurrency recovered to $0.22 but closed below the low of $0.19. On December 25, the uptrend repeated and the price fell back to the low of $0.15. Dogecoin will rise to $0.27 if the bullish momentum continues and the price rises above the moving averages and resistance at $0.19. The downward correction will continue if the bullish scenario is invalidated.

Dogecoin (DOGE) indicator display 

DOGE has fallen back to level 36 on the Relative Strength Index for period 14. It indicates that the cryptocurrency is in a downtrend and approaching the oversold area of the market. The cryptocurrency price is below the moving averages, which indicates further downward movement of the altcoin. The cryptocurrency price is above the 40% area of the daily stochastic. This indicates that the market is in a bullish momentum.

DOGEUSD( 4 Hour Chart) - JANUARY 8.png

Technical Indicators: 

Key resistance levels - $0.80 and $0.85
Key support levels - $0.45 and $0.40

What is the next direction for Dogecoin (DOGE)?

Dogecoin is in a downtrend, but selling pressure has reached bearish exhaustion. Since December 4, the market has consolidated above $0.15 support. Meanwhile, on December 30, the downtrend was ended by a candlestick that tested the 78.6% Fibonacci retracement level. The retracement suggests that DOGE will fall, but will reverse at the 1.272 Fibonacci extension level, or $0.158. The price action shows that the market is fluctuating above the Fibonacci extension.

DOGEUSD(Daily Chart) - JANUARY 8.png

Disclaimer. This analysis and forecast are the personal opinions of the author 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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