Dogecoin Finds Support above $0.26 as Bears Threaten to Short

Nov 07, 2021 at 07:31 // News
Coin Idol
Buyers are pushing Dogecoin to previous highs

Today, the price of Dogecoin (DOGE) has fallen to support at $0.26 after its recent vertical rally. Buyers are also pushing the altcoin to previous highs. The upside correction ended at the high of $0.27.

Today, the bears are trying to drop below the support at $0.26. A break below support will cause the altcoin to fall to the low of $0.23. Dogecoin will be prone to further declines on the downside. On the other hand, if the support at $0.26 holds, buyers will likely rise back above the current support and then initiate a new uptrend.

Dogecoin indicator reading

The DOGE price is at level 51 on the Relative Strength Index for period 14, indicating that there is a balance between supply and demand. If the current support holds, the DOGE price will be above the moving averages. This will help the cryptocurrency to continue its uptrend. Currently, the altcoin is below the 40% area of the daily stochastic. The stochastic bands on the daily chart are sloping horizontally, indicating that the bearish momentum is weakening.


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?

DOGE/USD is in a downtrend. The cryptocurrency has fallen above the $0.26 support level. It is not clear if the downtrend will continue. Meanwhile, on October 31, the downtrend has seen a retracement candlestick testing the 78.6% Fibonacci retracement level. The retracement suggests that DOGE will fall but reverse at the 1.272 Fibonacci extension level or $0.23.    


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.

Show comments(0 comments)