Dogecoin Survives Downtrend above $0.05 as It Resumes Recovery

Dogecoin (DOGE) exchange rate fell further to the low of $0.05 on June 13. Bears broke below the previous low of $0.06 while bulls bought the dips. After the recent drop on June 13, the bulls stopped the further decline. Last week, the altcoin fluctuated between $0.050 and $0.063.

On the upside, DOGE will retest or break through the 21-day line SMA if resistance at $0.063 is overcome. The cryptocurrency will regain its bullish momentum and rally to the 50-day line SMA if the 21-day line SMA is broken. On the downside, Dogecoin has reached the oversold area of the market. Another downward move will lead to the bulls buying the dips. Meanwhile, DOGE/USD is trading at $0.0539 at the time of writing.

Dogecoin indicator reading

Dogecoin is at level 30 on the Relative Strength Index for period 14, indicating that Dogecoin has reached the oversold area of the market. The current downward movement is likely to subside. DOGE price bars are below the moving averages, indicating a possible price decline. The 21-day line SMA and the 50-day line SMA are sloping south, indicating a downtrend.

Technical indicators:  

Major Resistance Levels – $0.18 and $0.16

Major Support Levels – $0.12 and $0.10

What is the next direction for Dogecoin?

Dogecoin is fluctuating above the support level of $0.07. The altcoin will continue its movement within the range if the current support holds. Meanwhile, on May 11 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that DOGE will fall, but will reverse at the level of 1.272 Fibonacci extension or $0.051. The price action shows that Dogecoin is retesting the level of 1.272 Fibonacci extension and could start a reversal.

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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