Dogecoin Trades Above $0.13 Support as Supply and Demand Balance Out

Apr 24, 2022 at 12:38 // Price
Coin Idol

Dogecoin (DOGE) price continues to fluctuate above the $0.13 support since the April 11 plunge.

Dogecoin (DOGE) price long-term forecast: bearish

Today, DOGE price retested the current support and retreated. The cryptocurrency asset is also trading above the 50-day line SMA, but below the 21-day line SMA. Last week, the altcoin squeezed between the moving averages. 

Neither the bulls nor the bears broke through the moving average lines. The altcoin will develop a trend when the moving average lines are broken. For example, if the bulls break the 21-day moving average line, it signals the resumption of the uptrend. DOGE will rise and regain the previous high of $0.17. On the other hand, if the bears break below the 50-day line SMA, the market will fall to $0.11. Meanwhile, DOGE/USD is trading between the moving averages and above the support at $0.13.

Dogecoin (DOGE) Indicator Reading 

Dogecoin is at level 45 of the Relative Strength Index for the period 14. The cryptocurrency is in the downward zone as it tends to decline. The bulls and the bears are in balance as the cryptocurrency price is between the moving averages. The market has fallen below the 20% range of the daily stochastic. This means that the current selling pressure has reached bearish exhaustion. The altcoin will resume its upward movement once the market reaches an oversold region.

Technical Indicators: 

Key resistance levels - $0.80 and $0.85
Key support levels - $0.45 and $0.40

DOGEUSD(Daily Chart) - April 23.png

What is the next direction for Dogecoin (DOGE)?

Dogecoin is in a downtrend, but has resumed its sideways movement in a narrow range. Meanwhile, on April 7, the downtrend; a retreating candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that DOGE will rise to the Fibonacci extension level of 1.272 or the $0.13 level. From the price action, it appears that the price of DOGE is retesting the 1.272 Fibonacci extension level to initiate a possible trend reversal.

DOGEUSD(Daily Chart 2 ) - April 23.png

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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