Dogecoin Resumes Downtrend as Altcoin Faces Rejection at $0.17

The price of Dogecoin (DOGE) has continued its downward trend after rejecting the high of $0.17. Since the start of the downtrend, the cryptocurrency's price has hit a series of lower highs and lower lows.

In a bearish pattern, the next lows must be greater than the previous low. When this pattern is broken, it is called a reversal of the downtrend. 

DOGE/USD is trading at $0.14 at the time of writing, with the previous low being $0.12. On the downside, the downtrend will resume when price falls below the previous low at $0.12. On the upside, the uptrend will continue if the current support at $0.14 holds. Today, there are bullish candlesticks above the current support as the price makes an upward move.

Dogecoin indicator reading

DOGE is at level 43 of the Relative Strength Index for the period 14. Dogecoin is trading in the downward zone while the price continues its downward movement. The cryptocurrency's price bars have remained below the moving averages, indicating a possible decline. The altcoin is above the 25% area of the daily stochastic. This indicates that the market has resumed its bullish momentum.

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?

On the 4-hour chart, Dogecoin is in a downward movement due to the rejection of the high at $0.17. The bears broke through this level and pushed the altcoin to the previous low. Meanwhile, the downtrend from February 8 has shown a candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 1.618 Fibonacci extension level or the $0.14 level. The price action shows that the altcoin has fallen and is retesting the level of the 1.618 Fibonacci extension.

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.