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Dogecoin Reaches an Oversold Region, Resumes Uptrend above $0.19 Support


coinidol.com 28 November 2021 11:04, UTC
Reading time: ~2 m

On November 26, the price of Dogecoin (DOGE) fell to its previous low of September 28. In other words, Dogecoin fell to the low of $0.19.

This $19 support level has not been breached since August 3. Today, the cryptocurrency is holding above the current support. And there are bullish candlesticks above the current support for a possible upside move. The cryptocurrency will move up if the current support holds. Dogecoin will break out of the downward correction if the price rises above $0.26. In the last action, the bulls broke the resistance at $0.26 after three attempts. On the other hand, if the bears break below the support at $0.19, the market will fall back to the low at $0.16. This was the historical price level on July 20.

Dogecoin indicator reading

DOGE/USD is at the 35 level of the Relative Strength Index for period 14, and the market is approaching oversold territory. The altcoin has a bearish crossover. The 21-day line is crossing below the 50-day moving average, which is a sell signal. Dogecoin is below the 20% area of the daily stochastic. This means that the market has reached the oversold area. The stochastic bands are sloping horizontally.

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 downtrend as the price has reached the oversold region. Meanwhile, on October 31, the downtrend has seen a retraced candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 1.618 Fibonacci extension level or $0.19. From the price point of view, the altcoin has fallen and tested the Fibonacci level.

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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