Dogecoin Drops as It Returns to $0.07 Support
Estimated Reading Time: 3 minutes
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Key Resistance Levels: $0.10, $0.12, $0.14
Key Support Levels: $0.08, $0.06,$0.04
DOGE/USD Long-term Trend: Bullish
Dogecoin (DOGE) price is dropping as it returns to $0.07 support. The rejection at $0.09 has stopped the present bullish trend in its tracks. The cryptocurrency asset has become stuck below the 50-day line moving average lines. The altcoin may stay in a range for a few more days as DOGE is trapped between the moving average lines. DOGE will retest its previous low at $0.07 if sellers break through the 21-day line SMA. At the time of writing, DOGE is currently trading at $0.08.
Daily Chart Indicators Reading:
As it approaches Relative Strength Index level 52 for period 14, Dogecoin is declining. Despite the setback, the altcoin is still in the uptrend zone. As long as the price bars remain between the moving average lines, the altcoin will be forced to trade in a range-bound area.
DOGE/USD Medium-term bias: Bullish
The moving average lines on the 4-hour chart for DOGE have been breached, indicating a further decrease. The altcoin is approaching the existing support at $0.07. Dogecoin produced an upward corrective during the January 18 decline, and a candle body tested the 78.6% Fibonacci retracement level. According to the correction, DOGE will drop but will turn around at the level of the 1.272 Fibonacci extension, or $0.074.
4-hour Chart Indicators Reading
Dogecoin is experiencing a bearish momentum below the daily Stochastic threshold of 30. A sell signal is generated when the 21-day SMA crosses below the 50-day line moving average line.
General Outlook for Dogecoin
The crypto asset has started to fall again as it returns to $0.07 support. The altcoin is falling as it gets closer to the $0.08 support level. Doji candlesticks will force the cryptocurrency to move in a range-bound fashion.
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