Dogecoin Struggles To Stay Above $0.07 As It Faces More Rejection

Dec 26, 2022 at 10:20 // Price
Coin Idol
Sellers and buyers are currently in a price war over the direction of the market

The price of Dogecoin (DOGE) is falling below the moving average lines.

Dogecoin price long term forecast: bearish

Bears broke the $0.07 support on December 19, while bulls bought the dips. Buyers are currently trying to keep the price above the previous low, but are encountering resistance at $0.08. The bullish momentum is retesting the previous support level of $0.07, which is now proving to be a resistance level. Should buyers keep the price above the $0.08 resistance level, the market will rise above the moving average lines and reach a high of $0.10. However, selling pressure may pick up again if Dogecoin is rejected at the resistance level of $0.080. DOGE /USD will then fall to a low of $0.05. Meanwhile, DOGE is trading at $0.077 at the time of writing.

Dogecoin indicator display 

The Relative Strength Index for period 14 shows that Dogecoin is still trading at a level of 40. In the downtrend zone, the cryptocurrency value is likely to continue to decline. Further decline is indicated by the position of the price bars below the moving average lines. Since December 11, the altcoin has been trading in the oversold zone below level 20 of the daily stochastic level.

DOGEUSD(Daily Chart) 0- December 24.22.jpg

Technical indicators 

Key resistance levels - $0.12 and $0.14

Key support levels - $0.06 and $0.04

What is the next direction for Dogecoin?

For the third time, the cryptocurrency asset has tested the support level of $0.07. Sellers and buyers are currently in a price war over the direction of the market. The Fibonacci tool has indicated that there is a possibility of a decline and reversal. DOGE made an upward correction of the downtrend on November 9, and a retraced candlestick tested the 78.6% Fibonacci retracement level. The correction suggests that DOGE will fall, but will reverse at the 1.272 Fibonacci extension or $0.05.

DOGEUSD(Daily Chart 2) - December 24.22.jpg

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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