Dogecoin Makes Positive Moves as Underlying Strength Grows

Feb 06, 2022 at 08:05 // Price
Coin Idol
Buyers are driving the DOGE price to retest the resistance at $0.15

The price of Dogecoin (DOGE) is trading in a narrow range at the bottom of the chart.

On January 22, the downtrend eased as the altcoin fell to a low of $0.12. Dogecoin is now in a sideways movement, fluctuating in a tight range between the prices of $0.13 and $0.15. Today, buyers are driving the DOGE price to retest the resistance at $0.15. 

On January 26, buyers retested the $0.15 high and were pushed back as the market fell to a low of $0.138. Today, the bulls are retesting resistance at $0.15 in an attempt to break above it. The upside move is doubtful as the market has reached the overbought zone. A rise above the support at $0.13 will overcome the first resistance. If the bulls manage to overcome the resistance at $0.15, Dogecoin will reach another high at $0.21.

Dogecoin indicator reading

DOGE is at level 49 of the Relative Strength Index for the period 14. The cryptocurrency has been performing positively lately. The RSI indicates that there is a balance between supply and demand. The cryptocurrency price has risen above the 21-day moving average line, but is below the 50-day moving average line. It is likely that the altcoin fluctuates between the moving averages. Dogecoin is above 80% of the daily stochastic. The cryptocurrency has reached the overbought zone of the market. It is likely to go down.


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?

The cryptocurrency will continue to move between the $0.13 and $0.15 levels. It is likely that the cryptocurrency will resume its uptrend if the buyers overcome the resistance at the recent high. Otherwise, the downward correction will continue.


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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