Dogecoin Is On The Edge Of A Key Level And Needs To Hold: A Technical Analysis – Dogecoin – United States Dollar ($DOGE)

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Dogecoin (CRYPTO: DOGE) is trading slightly lower Friday, along with the majority of the cryptocurrency market. 

Doge is nearing a key support level and if it breaks below, could see a strong bearish continuation move.

Dogecoin was down 3.79% at $0.168 Friday afternoon at publication.

See Related: Dogecoin Consolidates The Elon Musk-Fueled Rally, Core Developer Advises Caution: What’s Next?

Dogecoin Daily Chart Analysis

  • After falling below the higher low trendline, Doge made a strong bearish move and pushed toward support. Now the crypto is sitting just above the $0.15 support level and looking as though it may break below the level. This is a possible bearish sign for the future.
  • The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
  • The Relative Strength Index (RSI) has been on a downtrend for the past couple of months and now sits at 39. This shows that sellers have been piling into the crypto and pushed it lower.

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What’s Next For Dogecoin?

Falling below the moving averages and the higher low trendline was a bearish sign for Dogecoin. Now the crypto is hanging near the $0.15 support level and could see a drop below this level if the selling continues. Bulls are looking for a bounce off support and for the crypto to head toward the $0.35 level. Bears are looking to see the price fall below the $0.15 level and begin to hold this level as resistance.

Photo by Executium on Unsplash



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