Dogecoin Consolidates Between $0.30 and $0.40 as Bears Threaten to Short

May 23, 2021 at 10:25 // News

For the past five days, Dogecoin has been fluctuating between $0.30 and $0.40. The altcoin has plunged to a $0.22 low. The bulls bought the dips as shown by the candlestick‘s long tail.

DOGE price corrected up to $0.40 but was resisted. The rejection at the recent high made the altcoin fall to $0.35. DOGE/USD is consolidating above the $0.35 support. The altcoin price action is characterized by small body indecisive candlesticks called Doji and Spinning tops. 

These candlesticks indicate that buyers and sellers are undecided about the direction of the market. DOGE/USD is trading marginally above $0.35 support. Incidentally, if buyers break the resistance at $0.40, a rally above $0.50 is likely. If the bulls are successful above $0.50, Dogecoin will commence the resumption of upside momentum. Conversely, if the bears break the $0.30 support, the altcoin will decline to the low of $0.21. Nonetheless, if the market falls below $0.20, DOGE/USD will fall into a correction.

Dogecoin indicator analysis

The market has fallen to level 45 of the Relative Strength Index period 14. It indicates that price is in the bearish trend zone and below the centerline 50. The crypto’s price broke below the 21-day SMA but found support above the 50-day SMA. A break below the SMAs will mean a further downward move.

Technical Indicators

Key Resistance Zones: $0.50, $0.60, $0.70

Key Support Zones: $0.30, $0.20, $0.10 

What is the next direction for Dogecoin? 

Dogecoin price is falling and has reached the oversold region of the market. Presently, the Fibonacci tool has indicated a further downward movement of the coin. Meanwhile, on May 9 downtrend; a retraced candle body tested the 61.8 % Fibonacci retracement level. This retracement indicates that DOGE will fall to level 1.618 Fibonacci extension. That is a low of $0.21. From the price, the DOGE price tested the Fibonacci level and pulled back. The altcoin is consolidating in a price range.

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 CoinIdol. Readers should do their research before investing funds.



Source link

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img

You might also like...