Dogecoin Consolidates over $0.23 as Bulls and Bears Reach Indecision
Dogecoin (DOGE) price has consolidated above $0.238 support after the last bearish impulse on June 30. DOGE price has been hovering in a tight range between $0.2380 and $0.2550 for the past five days.
The price action has been marked by small indecisive candlesticks such as doji and spinning tops. The candlesticks indicate that buyers and sellers are undecided about the direction of the market. The current consolidation will likely lead to a breakdown or breakout. On the downside, a breakout will take the market to the low of $0.18. Conversely, a breakout above the high of $0.255 will catapult Dogecoin to a high of $0.30.
Dogecoin indicator reading
DOGE has fallen to level 42 on the Relative Strength Index for period 14. It indicates that the cryptocurrency is in the downtrend zone and below the midline 50. The 50-day and 21-day lines SMA are sloping horizontally. DOGE is below the 20% area of the daily stochastic. This indicates that the altcoin is in the oversold region of the market. We should expect the emergence of buyers in the oversold region.
Major Resistance Levels - $0.80 and $0.85
Major Support Levels - $0.30 and $0.25
What is the next direction for Dogecoin?
Dogecoin is consolidating above the current support. The cryptocurrency is not yet trending because of the small body candles. Meanwhile, on June 25 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that DOGE will fall to the 1,272 Fibonacci Extension level and reverse. From the price action in the market, the price of DOGE is consolidating above the current support.
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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