Dogecoin Faces Rejection at the Recent High as It Targets the $0.05 Low

Dogecoin (DOGE) is in a downward correction as the altcoin consolidates above the $0.061 support level. The price movement has not changed since August 28. Dogecoin fluctuates between $0.060 and $0.064 price levels.

The upward movement was stopped at the high of $0.064. However, as the price bars are below the moving average lines, DOGE is vulnerable to a decline. As the price fluctuates, the bears will try to break below the $0.06 support. If the bears break the $0.06 support, the altcoin will continue to fall to the low of $0.05. 

Dogecoin indicator reading 

The cryptocurrency is at level 40 of the Relative Strength Index for the period 14. It is in a downtrend and could fall further to the low of $0.05. DOGE is below the moving average lines, which indicate a further decline. Dogecoin is below the 40% area of the daily stochastic. This indicates that the market is in a bearish momentum.

Technical indicators:  
Major Resistance Levels - $0.08 and $0.10
Major Support Levels - $0.07 and $0.05  

What is the next direction for Dogecoin? 

DOGE/USD risks another decline as the altcoin faces a rejection at the 21-day line SMA. On the weekly chart, a candlestick tested the 78.6% Fibonacci retracement level on March 28. The retracement suggests that DOGE will fall to the Fibonacci extension level of $1.272 or to $0.05.

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.