Why Dogecoin Might Be Ready For A Reversal Soon

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Dogecoin (CRYPTO: DOGE) shares are are moving down Thursday. The cryptocurrency looks as though it could be trying to turn around after looking like it bounced.

Dogecoin was down 1.29% at $0.203 at last check.

Dogecoin Daily Chart Analysis

  • The cryptocurrency looks as though it may have found a bounce near support in a sideways channel.
  • Dogecoin trades below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the crypto may be entering a period of consolidation.
  • The 50-day moving average may act as resistance, while the 200-day moving average may hold as support.
  • Dogecoin is trading in a channel between support of $0.15 and resistance near $0.45. These are levels the crypto has struggled to cross in the past.
  • The Relative Strength Index (RSI) has been moving up lately and now sits at 46. This means there have been more buyers moving into the crypto and now there are only slightly more sellers than buyers.

EXCLUSIVE: Billy Markus On Creating Dogecoin, The Negatives Of Cryptocurrency, NFTs And Elon Musk

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What’s Next For Dogecoin?

Bullish traders would like to see Dogecoin start forming higher lows and work up toward resistance. Eventually, they want to see Doge break above resistance while holding its gains.

Bearish traders would like to see Dogecoin fall lower and drop below the channel support. If the crypto can fall below the support level, it may follow with a further bearish push.

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