Dogecoin in a Strong Uptrend, Targets High of $1.05

On May 3, the DOGE price broke the resistance at $0.45 after an impressive bullish run. The altcoin is approaching a high of $0.75.

The resistance was retested thrice before the occurrence of a breakout. On April 23, the bears intended to sink Dogecoin to a $0.15 low. The candlestick on that date bears a long tail. 

The long tail indicates that there is strong buying pressure above the $0.15 support. Fortunately, the bulls bought the dips which catapulted the coins to rally above $0.70. Further upsides are possible as the bullish momentum is likely to extend to the high of $1.05. However, further upsides are doubtful as the price indicators have shown an overbought condition of Dogecoin.

Dogecoin indicator reading 

Dogecoin is trading in the overbought region of the market. The altcoin is at level 76 of the Relative Strength Index period 14; It indicates that DOGE has no enough room to rally on the upside. Similarly, the altcoin is above the 80% range of the daily stochastic. It indicates that the altcoin has been overbought since May 2.

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 already in a strong uptrend. The Fibonacci tool has indicated a further upward movement of prices. On April 16 uptrend; the last retraced candle body tested the 50 % Fibonacci retracement level. This retracement indicates that the altcoin will rise to level 2.0 Fibonacci extension or the high of $0.83. 

Disclaimer. This analysis and forecast are the author’s personal opinions and 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.