Dogecoin Is in a Fresh Downtrend, Poises to Revisit the $0.21 Low
On May 29, 2021, Dogecoin (DOGE) price was in another downtrend. Now the token is in trade at the level of $0.30 at the time of writing.
Dogecoin (DOGE) Price Long-term Prediction: Bullish
Following the last bearish impulse last week buyers and sellers have been in price tussle between $0.28 and $0.38. Buyers attempted to push the DOGE price above the moving averages but were repelled. The bulls were rejected at $0.36 and $0.38 resistance which caused the altcoin to resume selling pressure. As the downtrend resumes, then the bears may want to push DOGE price to the lows of either $0.24 or $0.21.
In the previous price action, the market fell to these lows but the bulls bought the dips. On May 20, DOGE price corrected upward but was resisted at $0.44. This plunged the altcoin to a $0.24 low. Again, the bulls bought the dips as the price corrected upward to $0.38. Dogecoin continued its downward correction before the last rejection at $0.36.
Dogecoin (DOGE) Indicator Reading
Now the DOGE/USD pair price has broken below the 21-day and 50-day SMAs which suggest a further downward movement of the prices. Dogecoin is below the 40% range of the daily stochastic. This indicates that the market has bearish momentum. The 21-day SMA and 50-day SMAs are sloping downward.
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 (DOGE)?
Dogecoin has resumed a fresh downtrend as price breaks below the moving averages. The downtrend on May 10 with a retraced candle body tested the 61.8 % Fibonacci retracement level indicates that the altcoin will fall to level 1.618 Fibonacci extension or level $0.18.
Disclaimer. This analysis and forecast are the author’s personal opinions, 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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