Dogecoin Suffers From Strong Resistance But Recovers Above $0.12

The Dogecoin (DOGE) price is trading in a narrow range of $0.12 to $0.18. The bears have the upper hand and are testing the $0.12 support for the fourth time.

Long-term forecast for the Dogecoin price: bearish

The bulls will put up a tough fight at the current support of $0.12. Dogecoin will lose even more value if the current support is broken. The cryptocurrency will drop to a low above the $0.08 support.

Conversely, DOGE will resume its uptrend if the price breaks above the moving average lines. The altcoin will initially recover to the resistance at $0.18. The upward momentum will start when the price breaks above the current high. Currently, the DOGE/USD price is at $0.122.

Dogecoin indicator reading

The moving average lines are sloping horizontally, but the 21-day SMA has fallen below the 50-day SMA. DOGE is sending out a bearish signal, suggesting that the cryptocurrency value may fall. On the 4-hour chart, the moving average lines show a downtrend.

Technical indicators

Key resistance levels - $0.22 and $0.24

Key support levels – $0.14 and $0.12

What is the next direction for Dogecoin?

On the downside, DOGE is falling below the moving average, but the bears have broken the current support at $0.12. The cryptocurrency hit a low of $0.113, but the bulls bought the dips. The altcoin rebounded above the $0.12 support level and resumed consolidation above it. If the current support holds, Dogecoin will start to move higher.

Coinidol.com reported last week that after the price drop on June 7, when it fell to a low of $0.139 before recovering, the price bars are now below the moving average. 

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 CoinIdol.com. Readers should do their research before investing in funds.