Dogecoin Falls As It Retests The Critical Support At $0.36

Dogecoin (DOGE) has lost its bullish momentum as the bears break below the 21-day SMA. The cryptocurrency was dumped at a high of $0.48, which caused it to fall below the 21-day SMA.

Dogecoin price long term forecast: bearish

On the downside, the negative momentum could make a low above the 50-day SMA support. Currently, the price of the cryptocurrency has fallen and stopped above the current support level of $0.36. DOGE will be forced to trade in a narrow range between the moving average lines, with the $0.36 support remaining firm. 

However, selling pressure will persist below the 50-day SMA where the current support has been breached. DOGE is trading above the current support.

Dogecoin indicator reading

DOGE price bars are between the moving average lines, indicating a likely range-bound move for the cryptocurrency. The altcoin will move into a trend when either the 21-day or 50-day SMAs are breached. The 4-hour chart shows DOGE below the moving average lines, indicating a decline.

Technical indicators

Resistance Levels $0.45 and $0.50

Support Levels – $0.30 and $0.25

What is the next direction for Dogecoin?

DOGE drops below the moving average lines. The moving average lines have stopped the upward correction, so the cryptocurrency resumes its decline. The decline will continue to the previous low of $0.36. If the current support holds, the altcoin will start to move in a range.

Disclaimer. This analysis and forecast are the personal opinions of the author. They are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their research before investing in funds.