Dogecoin Trades above $0.124 as It Attempts to Sustain Above $0.137

May 08, 2022 at 08:49 // Price
Coin Idol
The upward movement was slowed down by the moving averages

The price of Dogecoin (DOGE) is in a downtrend, but the market reached bearish exhaustion when the altcoin fell to $0.124 on April 30. After the downward impulse on April 30, the cryptocurrency has consolidated above the current support.

The upward movement was slowed down by the moving averages. Last week, DOGE/USD traded below the moving averages. 

Buyers are also defending the current support while the altcoin resumes its consolidation above it. Dogecoin will rally to the high of $0.15 as buyers push the altcoin above the moving averages. The cryptocurrency will resume its uptrend if the resistance at $0.15 is broken. On the other hand, the market will fall back to the previous low of $0.11 if the bears break below the current support. In the meantime, Dogecoin is moving in a narrow range between $0.124 and $0.137.

Dogecoin indicator reading

Dogecoin is at level 43 of the Relative Strength Index for period 14. The cryptocurrency is trading in the downtrend zone and trying to rebound above the current support. The 50-day line SMA and the 21-day line SMAs are horizontally sloping, indicating a move within the trading range.

The altcoin is above the 25% range of the daily stochastic. The market is in a 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?

Dogecoin's downward movement has subsided as the altcoin has resumed a sideways trend. Moreover, the market is characterized by small body candlesticks, which indicate that buyers and sellers are indecisive about the direction of the market. Meanwhile, the downtrend from April 27 has a candlestick body testing the 78.6% Fibonacci retracement level. The retracement suggests that DOGE will fall but reverse at the 1.272 Fibonacci extension level or $0.128.


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.

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