Dogecoin is Trapped as it Fluctuates Between $0.17 and $0.22

The price of Dogecoin (DOGE) has rallied and the altcoin has reached the high of $0.19. On the uptrend from December 14, Dogecoin was pushed back at the $0.22 resistance level.

The altcoin fell back to $0.16 and resumed the current uptrend. If buyers keep the price of DOGE above the $0.22 high, the cryptocurrency will rise to $0.26 or $0.30. 

However, if the altcoin fails at the $0.22 resistance, the market will go back and trade in a range again. Altcoin will fluctuate above the 21-day line SMA, but below the 50-day line SMA. The bulls are expected to break the 50-day line SMA to resume upward momentum. On the other hand, if the bears break below the 21-day line SMA, the intention is to pull DOGE lower. In the meantime, Dogecoin continues to climb higher.

Dogecoin indicator reading

The recent uptrend has taken DOGE to the 53 level of the Relative Strength Index for the 14 period. This indicates that the altcoin is in an uptrend and capable of further upward movement. The uptrend will continue if the price breaks the resistance line of the descending channel and closes above it. The cryptocurrency value is above the 80% area of the daily stochastic. The current uptrend is approaching an overbought area. This will likely cause the price of DOGE to fall.

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?

DOGE/USD is in an uptrend. The price of DOGE is forming a series of higher highs and higher lows. The current uptrend will continue as long as the trend line is not broken. Every time the DOGE price tests the trend line, it will go back up. The uptrend is considered to be over when the price breaks the trend line and closes below it.

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.