Dogecoin Is in a Vertical Rally, May Further Decline

Oct 31, 2021 at 05:34 // News
Author
Coin Idol
Dogecoin vertical rallies that are not backed by strong fundamentals

Dogecoin (DOGE) has seen a pullback over the past three days after its recent vertical rally. Today, the cryptocurrency has found support above $0.29 as the altcoin resumes its upward movement.

The cryptocurrency has retraced about 50% of the vertical rally before resuming its upward movement. However, vertical rallies that are not backed by strong fundamentals will see a huge decline. In this case, retracement is appropriate if current support holds. On the upside, if bullish momentum resumes, the market will retest resistance at $0.34 to break through it. A breakout above the recent high will drive the altcoin to the high of $0.45. In the meantime, Dogecoin is consolidating above the $0.29 support and the market will drop if the current support fails to hold.

Dogecoin indicator reading

Dogecoin price is at the 61 level of the Relative Strength Index for period 14. Dogecoin is in an uptrend and is capable of further upward movement. The price bars are above the moving averages, which indicates a further rise of the cryptocurrency. The altcoin has a bullish crossover. That is, the 21-day line SMA crosses above the 50-day line SMA, which is a buy signal.

DOGEUSD(Daily_Chart)_-_OCT_.30.png

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 strong uptrend. The altcoin has broken through more resistance levels as it reached the high of $0.34. Meanwhile, the uptrend from October 28 has seen a candlestick retracement testing the 50% Fibonacci retracement level. The retracement suggests that DOGE will rise to the 2.0 Fibonacci extension level, or $0.44.

DOGEUSD_(4_Hour_Chart)_-_OCT._30.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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