Dogecoin Recovers but Encounters Resistance at $0.068

Sep 25, 2022 at 09:26 // Price
Coin Idol
DOGE will be forced to move between the moving average lines

Dogecoin (DOGE) price is in an uptrend as it breaks above the moving average lines.

Dogecoin price long term forecast: bullish 

However, the upward momentum has yet to break the 50-day line SMA as we write this article. If buyers convincingly break the 50-day line, DOGE will rise to a high of $0.09. On the other hand, DOGE will be forced to move between the moving average lines if it turns away from the 50-day line SMA. However, the upward movement is doubtful as the cryptocurrency is approaching the overbought region of the market.

Dogecoin indicator display 

DOGE is at level 56 of the Relative Strength Index for period 14. The altcoin is in the uptrend zone as it bounces above the current support. The price bars are between the moving average lines, indicating a possible move within a range. The altcoin is above the 80% area of the daily stochastic. This means that the altcoin has reached the overbought region. Sellers will show up in the overbought region.

DOGEUSD(Daily Chart) - September 24.png

Technical Indicators: 

Key resistance levels - $0.08 and $0.10

Key support levels - $0.07 and $0.05

What is the next direction for Dogecoin?

Dogecoin is trying to resume the uptrend, but is encountering resistance at the high of $0.068. Meanwhile, on September 23, a bearish candlestick tested the 50% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 2.0 Fibonacci extension level or the $0.067 level. From the price action, it appears that the market has reached the Fibonacci extension and is pulling back from the recent high.

DOGEUSD(4 Hour Chart) - September 24.png

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 in funds.

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