For the past week, the price of Dogecoin (DOGE) has been in a downward movement after leaving the high of $0.21. Today, the cryptocurrency has fallen to the low of $0.12 by the time of writing.
The low of $0.12 is the previous low of the December 4 price drop. During the December 4 slump, bulls bought the dips as the DOGE price corrected to $0.21, but were pushed back. After that, DOGE/USD was forced to move in a range between $0.15 and $0.18. Today, the bears have the upper hand as the market falls back to the previous low of $0.12. At the previous low, the altcoin has reportedly reached the oversold zone. This means that the current downtrend is likely to subside.
DOGE is at level 29 of the Relative Strength Index for period 14. The cryptocurrency is already in the oversold region of the market. This indicates that the selling pressure has reached bearish exhaustion. The moving averages of the 21-day line and the 50-day line are sloping downward, indicating a downtrend. Dogecoin is below 20% of the daily stochastic. Moreover, the market has reached the oversold zone.
Major Resistance Levels - $0.80 and $0.85
Major Support Levels - $0.45 and $0.40
The cryptocurrency has continued its downward trend as the price has reached the previous low. Meanwhile, on December 14, the downtrend 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 $0.114.
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.