Dogecoin (DOGE) has been consolidating above $0.18 support for the past four days. Bulls failed to break through the $0.21 resistance, forcing the cryptocurrency to resume a sideways move below the recent high.
The DOGE price is characterized by candles with small bodies called doji and spinning tops. These candlesticks describe that buyers and sellers are undecided about the direction of the market.
This is the reason for the current consolidation. Meanwhile, Dogecoin's upside is being hindered by $0.21 overhead resistance. On the upside, if buyers break through the $0.21 overhead resistance, the cryptocurrency will move up to $0.25. Conversely, if resistance remains unbroken, the DOGE price will fall. Bears will take advantage to push the DOGE to the previous low at $0.16.
Dogecoin is at level 42 of the Relative Strength Index of period 14. It indicates that it is in the bearish trend zone and is capable of falling down. DOGE is above the 50% area of the daily stochastic. This indicates that Altcoin is in a bullish momentum. The 50-day and 21-day SMA are sloping south, indicating a downtrend.
Major Resistance Levels - $0.80 and $0.85
Major Support Levels - $0.30 and $0.25
DOGE/USD is in an uptrend. The uptrend is encountering resistance at the high of $0.21. It is unclear if the bullish momentum will continue beyond the overhead resistance. Meanwhile, on July 21 uptrend, a retraced candlestick body tested the 61.8% Fibonacci retracement level. The retracement suggests that DOGE will rise to the level of 1.618 Fibonacci extensions or the level of $0.24.
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.