Dogecoin Is Range Bound as Buyers Attempt to Breach $0.24 Resistance



Dogecoin (DOGE) is stuck at the $0.23 price level today. The cryptocurrency has been trading between the moving averages since October 4. The price of DOGE is above the 21-day line SMA and below the 50-day line SMA.

The altcoin shows a trend when the moving averages are broken. For example, on October 6, buyers pushed the altcoin above the 50-day line SMA, but were stopped at resistance at $0.27. The cryptocurrency would have risen to $0.32 or $0.35 if buyers had been successful above this line. Nevertheless, the price of DOGE fell back to the support of the 21-day line SMA and continued its consolidation above this line. This is an indication that Dogecoin lacks buyers at higher price levels. However, if the bears break below the 21-day line SMA, the market will fall to a low of $0.19.

Dogecoin indicator reading

The cryptocurrency is at level 51 on the Relative Strength Index for period 14, which explains that there is a balance between supply and demand. The balance could be in favor of sellers as the altcoin fluctuates above the 21-day line SMA. The direction of the market is determined when the moving averages are broken.

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?

On the 4-hour chart, DOGE/USD is showing an upward movement as the price breaks above the moving averages. DOGE has fallen back above the support of the moving averages. The Fibonacci tool has indicated a possible move in cryptocurrency. Meanwhile, the price entered an uptrend on October 15. A retreating candlestick has tested the 50% Fibonacci retracement level. This retracement suggests that the altcoin will rise to the 2.0 level of the Fibonacci extension or to the $0.26 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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